JSPL Foresees Intact International Steel Demand

SEATTLE (Scrap Monster): Vidya Rattan Sharma, Managing Director, Jindal Steel and Power Limited (JSPL) foresee demand for international steel to remain intact over the coming months. The domestic steel demand in India, impacted by Covid-19, too will pick up by mid-June this year, he added.

Commenting on the high steel prices, he said that there has been steep rise in prices of iron ore, scrap materials and other raw materials. For instance, the iron ore prices have surged higher by almost 500 times since October last year. This has impacted the total cost of steelmaking, which is reflected in the high prices for steel. However, Indian steel prices are still the lowest in the world, he noted.

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Major industries are seen working at only 60 to 70% of their total capacities. The anticipated drop in Covid-19 active cases by mid-June this year will give major relief to customers and companies.

As such the company has ambitious growth plans for the next five years. JSPL hopes to become a net debt-free company in 2022. It targets steel production of 8.3 million tonnes by the next financial year. JSPL aims to bring down its debt substantially to around INR 9,000-9,500 crores. It must be noted that the company’s debt had totalled around INR 46,000 crore in 2016.