JSW to raise steel prices 3 to 4 per cent

JSW Steel, currently operating at a 50-60 per cent capacity, is in talks with its long-term customers for raising prices in the range of 3 to 4 per cent.

According to Jayant Acharya, director (sales and marketing), JSW Steel, the price increase for long-term contracts was under discussions and its monthly prices had gone up by  3 to 4 per cent in October. He added, the quarterly prices, depending on the product, segment, would be finalised soon.

He said he would not like to comment on how much it would go up but the indication was an increase of 3 to 4 per cent was imminent.

Long-term contracts entered into by companies are typically with auto, consumer durable companies, etc, and though customer sentiments were not as buoyant as the companies expected, JSW Steel was pressing ahead with the price hike as the cost of steel production had increased and the iron ore issue in Bellary. The company's margins were down 2.5 per cent last quarter and it was trying to make up with the price increase.

The company's profits had dropped over 71 per cent and it had lost around half a million tonnes of steel production due to non-availability of iron ore.

The steelmaker has cut spot sales and is liquidating inventory to meet long-term customers' steel demands.