Importers finding gaps in India’s 12% steel safeguard duty: JSW Steel’s Jayant Acharya

Some non -automotive importers use this scheme to buy cheaper steel from the alleged abroad of Acharia and sell finished goods in the domestic market. The authorized bets to soften during the 18 -month window that is allowed to make products for export products before using local steel.

Among the other temporary solutions, he said that the purchase of semi -finished steel that did not take the task of protection and then processed more in Turkey. Authorized, such imports, especially from countries like Russia and ASEAN block said.

In an interview, ACARYA said, “If there is any leakage, we have to block them,” he said.

JSW Steel Executive’s comments come because the steel prices in the domestic market continue to fall despite the decrease in strong demands and imports. In addition to other things, the prices of hot rolled coils of the steel used in automobiles and consumer endings fell to the lowest level of four months LaAccording to the data of Bigmint, a market intelligence company, 50,700 for a ton in June.

The price decrease was with a decrease in international steel prices, even if India’s imports fell. According to an investor presentation from JSW Steel, the country imported 1.4 million tons of finished steel in the April-June quarter. In this period, it is estimated that India’s steel consumption grew by about 7% in the previous quarter compared to approximately 38.3 million tons.

Acharya argued that the title trade figures did not transmit all the official. Considering that steel imports came 1-2 months after an order, official import data could not reflect real-time market feelings around pricing.

“Duygu is determined by the reservation of the imports in the operation month. Therefore, if the import reservation is at a lower level, it becomes a reference point for discussion with these indigenous (steel manufacturers),” he said.

He also said that import prices continue to affect the domestic market independently of the amounts. This is likely to be under pressure from domestic steel prices, even if the import volumes are narrow.

In recent months, Russia and the 10-Narion ASEAN block have been increasing in imports, “there are current countries currently coming to India,” he said. The reason for this is that it was caused by high tariffs in markets such as the US and Europe and forced these countries to export more to India.

The steel industry contributes about 2% to India’s GDP. JSW Steel is the largest domestic steel manufacturer according to capacity, which follows Tata Steel, Indian Steel Authority and Jindal Steel and Power.

During an interaction with analysts last week, JSW Steel’s management expects a positive decision when the government reviewed the task of protection in both time and ratio of steel imports. On April 21, the government appointed 12% protection to steel imports for 200 days.

Steel, capital is an intensive industry, Acharya, steel plants before making long -term investments before exposure to global market uncertainties to prevent exposure to tariffs in terms of the need for long -term stability, he said.

JSW Steel has doubled its profits in June of the 26 financial year, supported by higher production and sales volume and supported with a higher production and sales volume, which is an important raw material. Steel manufacturer made a profit La2.209 CRORE La867 crore in the same quarter a year ago. 26 Consolidated for the first quarter of the financial year La43,147 CRORE, La42,943 Crore from the same period last year.

Acharya said that the Supreme Court’s Bhushan Steel and Power Ltd (BPSL) decision would not affect the expansion plans. SC rejected JSW Steel on May 2 La19,700 Crore ordered BPSL acquisition and liquidation.

The company expects its hearing for reviews before starting 0.5 million tons of expansion at BPSL. However, it has no effect on its goals and they are on the way to obtain a capacity of 50 million tons by 2050.

Archarya also confirmed that the steel demand in India was strong and that it was ready to see an incremental growth of approximately 13-14 million tons. This will be an increase of 144 million tons in 25 financial years, according to Bigmint estimates. JSW Vijayaagar Metallics Ltd (JVML) and Blast Furnace 3 will help the steel manufacturer to meet this growing demand with additional volumes starting from the increase after the upgrade increase.

JSW Steel expands the Vijayaagar facility in Karnataka by adding 5 million tons (MTPA) annually through JVML, which will bring the total capacity of the facility to 18 MTPA.

JSW Steel has a consolidated capacity of 35.7 MTPA, including 34.2 MTPA and 1.5 mtpa domestic capacity in the USA.

On the cost front, the steel manufacturer is waiting to see some benefits due to strategic steps taken especially in areas such as smelling coal. Acharya, the current quarter of the smelling coal prices are softer, but now stabilized, he said.

Smell coal is an important component used to make steel as well as iron ore. It is heated without air and the coca used in fluffy ovens to help convert the iron ore to liquid iron. This liquid iron is then used to make steel.

“We continue to look at the beginning of the new mines we have received in the captive in Karnataka and Goa, ve and domestic smelling coal mines are expected to be activated in the next few years, which will support the cost efficiency further.

The overseas operations of the company are expected to be directed by a more suitable international pricing environment.

Steelmaker has a 1.5 MTPA electrical-back-based steel production unit in the USA and 1.75 mtpa plate and pipe production factory in Texas. In Italy, it has a 0.32 MTPA railway production unit, which is expanded to 0.6 mtpa at capacity.