JSW Steel Expects Exports to Compensate Sluggish Domestic Demand
JSW Steel Mint

JSW Steel Expects Exports to Compensate Sluggish Domestic Demand

CNBCTV18 reported that JSW Steel’s Joint MD & Group CFO Mr Seshagiri Rao said that steel prices have been a little softer because of

CNBCTV18 reported that JSW Steel’s Joint MD & Group CFO Mr Seshagiri Rao said that steel prices have been a little softer because of the monsoon season. Mr Rao said “There has been volatility in the prices for the last two months. But after that, there has been a recovery. If you look at continent by continent, the prices have fallen by 30-40 Euros. Otherwise, in all the regions, the fall we have experienced in the month of July has come back once again. The underlying demand is very strong. That is the reason why the prices again recovered. From July 1 to September 1, prices have remained more or less at the same level as on July 1. The prices have fallen by 4-5 percent and again, it recovered as on date.”

He explained “Indian steel demand has picked up but it is still lower than anticipated. The month of April 2021 saw 6.7 million tonne of demand, which has picked up. In the month of July, it was close to 8.25 million tonne. It is still lower than the peak that we saw in the month of March 2021, which was close to 10 million tonne. There is some sluggishness in the overall demand into monsoon season but it is supplemented by exports, which is growing. In the month of July, exports from India were 1.5 million tonne.”

He further said, “Manufacturing and exports are the two drivers. Auto components and engineering goods exports are also causing incremental steel demand in India. Relative to the demand, the production is not able to catch up.”

On semiconductor shortage issue, he said, “In the auto sector, the production schedules are getting postponed because of the chip shortage.”

On container shortage, he said, “The exports which are happening across all the sectors from India are getting piled up at the ports, either due to lack of shipping lines or due to congestion. Exports could have been much better if this situation was not there.”

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