Jindal Steel and Power Ltd. will increase production in the remainder of the March-ended quarter due to increased demand and better pricing.
“In January, we produced at the rate of 6 million tonne... in February and March, we're actually increasing that production,” Executive Chief of steel business NA Ansari told BloombergQuint, adding that he expects volumes and pricing to improve led by a favourable demand situation.
“Our own demand is fairly strong and the good point is our gross domestic product growth is also going well,” Ansari said, noting that JSPL is now receiving more orders, with the erosion of the downward pressure on pricing from the international markets.
The Jindal Group subsidiary, according to Ansari, could hike steel prices in the future as the cost of raw materials have increased.
Other Highlights:
- Q2 was difficult due to a lot of resistance in the market.
- JSPL's Q3 results were satisfying led by good product mix.
- Initial period in the ongoing quarter witnessed market resistance, liquidity issues.
- Demand picking up since January-end thanks to easing liquidity, forex support.
- Demand in China and U.S.-China trade war issues impacting prices; Chinese prices have bottomed out.
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