Good News For Indian Steel Cos
JSW Steel Ltd. has recorded a net quarterly profit of 7179 crores, but the company seems to struggle with the increasing input costs, and they are in the process of creating policies to combat the crisis. The company seems to be contemplating the fact that the scrap steel prices in the US are rising, along with an energy innovation in the European Union, while India is struggling with increasing coking coal rates, there has been a 300% increase in the prices, $120 to $400 per tonne.
If the coking coal prices go up, so will the surcharge. Given the company’s expansion at the Dolvi plant, the cost can be mitigated. The unsettling patterns of demand from the Chinese investors have been falling, there is a 23% decrease in steel demand from China. Policies of decarbonization are said to be the reason behind this lack of demand as well as the lack of new property investment.
However, contradictory to the demand from China, the rest of the world is demanding a higher amount of steel, thanks to an economic revival, manufacturing activities, energy transition, lower interest rates, and a higher amount of liquidity, such factors are making sure the influencing the demand of steel from India is as evergreen as it could be.