Jindal Steel & Power Ltd. is concerned about the higher prices of iron ore—a key raw material in steelmaking—but expects them to come down to a “reasonable level” in the coming months.
“India has a major restraint in iron ore. If we are not able to capitalise on that strength as a nation, then we are losing,” Chief Executive Officer NA Ansari told BloombergQuint in an interaction. “Domestic iron ore should be available at reasonable prices.”
Domestic iron prices rose by as much as 20 percent in February after Brazil's Vale SA—as the world's largest producer of the commodity—closed some of its operations after a fatal dam disaster.
This also comes at a time the company is facing issues related to import of steel, especially from Iran which routes it through a “third country”. Ansari said this trade is a cause of concern since Iran's need for dollar is very high and they can supply at much cheaper prices to get dollars. “We need to make sure the imports come at the right price.”
Watch the full interaction here:
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