JSW Steel hikes prices by 3-5% across all categories

JSW Steel hikes prices by 3-5% across all categories

Mumbai: JSW Steel Ltd, the country’s third-largest steel-maker on Monday said that it has raised product prices by 3-5% across all categories led by an increase in raw material prices and pick-up in demand.

“We have raised product prices across all categories by 3-5% starting this month," JSW Steel, director sales and marketing, Jayant Acharya said.

“Prices of raw materials like iron ore and coal have seen a pick-up and demand (for steel) is coming back. Overall steel demand in India should grow by more than 9% because there is a pick-up in construction, auto and housing sector," he added.

Acharya said that there was a possibility that steel prices may be hiked again within the next six months when companies enter into long term agreements with suppliers in April.

“Coal prices have jumped 20% this year over the last fiscal, while iron ore prices are 20-30% higher," JSW Group’s chief financial officer Seshagiri Rao said.

He said that coking coal prices were likely to see a 10% increase in 2010, while iron ore prices could rise by 15%.

“Demand recovery is happening globally. Prices won’t come down," Rao said.

He said flat products, used in cars and white goods, had shown strong demand in 2009, while demand for long products grew by 30% in December.

“JSW Steel will need 12 million tonnes iron ore in fiscal 2011 as against its requirement of 11 MT in FY10," Rao said.

The company, which currently requires 4.5 MT of coking coal, will import more to meet its requirement of 5 MT to be used for expansion of a steel plant in Vijaynagar.