Bloomberg reported that JSW Steel is looking outward as the slowest economic expansion in six years cuts demand in India and puts pressure on margins. Joint Managing Director Seshagiri Rao in an interview said that JSW Steel expects to exceed its export target of 2.2 million tonnes to 2.4 million tonnes for the fiscal year after having seen the slowdown in the domestic demand. Mr Rao said that “There has been a substantial increase in inventories, indicating falling demand in the last two months. For the full year, growth will be slower than the earlier estimate of 6.5% to 7%.”
Mr Rao further said that “What we are hearing is that a lot of companies, particularly sponge iron players, pellet players and lot of secondary players are either cutting down or moderating production. Only the big players are still continuing and trying to sell and reduce inventories. If demand doesn’t recover in the second half, then primary producers may have to review their production plans.”
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