December 02, 2008

JSW Steel not to hike steel prices for 3-4 months

Mr Sajjan Jindal vice CMD of JSW Steel Limited recently said that it has no immediate plans to raise steel prices and is willing to absorb the ensuing hit in profit margins for up to 4 months.

Mr Jindal said that "Margins will be hit, but we are willing to absorb the impact for another 3 months to 4 months. Beyond that, we have to follow global trends."

He said that the government could artificially keep domestic prices low, but over a longer period, it would force steel producers to cut production and even shut down. He added that "It may be possible to temporarily control prices by artificial means, but in the long term if the industry is hurt, there will be no expansion."

He added that global steel prices may moderate in the medium to long term on slower growth worldwide.