India’s JSW Steel Limited sees a significant rebound in steel volume sales in domestic and overseas markets in the fourth quarter, from the contagion of global recovery, JSW Steel Limited joint managing director Jayant Acharya said in a statement on Tuesday, January 30.
“I expect the volumes will be better, driven by a seasonally strong quarter. The global steel prices in the last month have improved in the US, Europe, and China, as well as in the Asian regions. Buoyant global prices should translate into better pricing even in the domestic market,” he said.
“We are witnessing a better global environment for exports and that should increase the export volume, which we are already seeing in the order book. So, stronger volumes in the fourth quarter should be possible,” Acharya said.
He said that the industry is hopeful that the government will maintain its focus on public capital expenditure, manufacturing growth, and energy transition initiatives, leading to higher demand for steel.
He said that the company’s exports amounted to 550,000 mt which was just nine percent of JSW Steel’s total sales and was low largely because of subdued markets and aggressive pricing by producers in China.
The company also experienced an increase in raw material prices as coking coal and iron ore prices inched upwards during the quarter and are expected to continue being a concern in the current quarter.
“I think coking coal prices could increase by $20-25/mt. Iron ore prices are also elevated. I expect that some of that will be mitigated through higher volumes and a better mix both from better export pricing and some improvement possibility in the domestic market,” Acharya said.