Jindal Steel and Power Limited (JSPL) says that further increases in global steel prices will make it unaffordable for customers, which in turn could have serious negative consequences for the entire sector.
Sharma, JSPL's managing director, said the company does not expect steel prices to rise further this month, or at least until the third week of December. Steel products have witnessed recent price increases. At the same time, prices for coking coal and scrap remain at record highs. International freight rates are also at their peak.
Freight and raw material costs are forecast to decline in the coming months. Iron ore prices have already started to decline from high levels. According to him, a further decline in coking coal prices should reduce raw material costs, thus avoiding further increases in steel prices.
The global steel industry is likely to stabilize in the near future, mainly due to the projected decline in steel consumption in China by 5-7%. The fall of the real estate market in the country foreshadows difficult times. However, in India, steel production in this country also tends to decline.
JSPL Highlights Negative Impact of Further Rising Steel Prices
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Azovpromstal® 25 October 2021 г. 11:45 |
