DNA reported that some customers of JSW Steel have begun feeling the pinch of drying up supplies.

Pennar Industries of Hyderabad and New Delhi based APL Apollo Tubes apprehend their earnings will be impacted if JSW is unable to meet their monthly demand.

Mr Anantha Reddy MD of Pennar said “We source close to 10,000 tonnes to 11,000 tonnes of the total 15,000 tonnes we require every month from JSW Steel. Now with the huge production cut, we could take a hit too. I could lose customers.”

Mr Sanjay Gupta MD of APL Apollo Tubes said the company might see a 10-20% erosion in earnings if the supply declines and prices are increased. He said “The word on the street is that companies might increase prices by INR 3,000 per tonne from the first week of October. Besides that, if JSW cuts some supply, we will see our yearly numbers being impacted.”

(Sourced from dnaindia.com)