More Stories

Informist, Friday, Jul. 18, 2025

 

Please click here to read all liners published on this story

--JSW Steel: Inventories increased during June quarter
--CONTEXT: Comments by JSW Steel's mgmt in post-earnings analyst concall
--JSW Steel: Inventories up in Q1 partly due to exports volume decline
--JSW Steel: Exports fell in Apr-Jun amid global uncertainties
--JSW Steel: Steel prices moderated in Jun-Jul
--JSW Steel: Steel prices turned soft Jun-Jul partly due to seasonality
--JSW Steel: Steel prices turned soft Jun-Jul on cheaper imports
--JSW Steel:Steel prices turned soft Jun-Jul on ongoing global uncertainties
--JSW Steel: Volume in Jul-Sep will be higher than Apr-Jun
--JSW Steel: Have seen some low-priced steel imports from Russia

 

By Rajesh Gajra

 

NEW DELHI – Hot rolled coil steel prices moderated in June and partly this month as well, after having moved up in Mar-Apr and partly in May, the management of the largest steel manufacturer in India JSW Steel Ltd. said Friday in a post-earnings conference call with investors and analysts. The company's management said the price moderation was due to the ongoing uncertainties globally and some of the cheaper steel imports finding its way into India.

 

There is also a seasonal impact on steel prices with the monsoon disrupting infrastructure construction, according to the management. It said due to highly competitive domestic prices currently the chances of more imports from China would be lesser. The management, however, flagged off a new development saying that some low-priced imports have been seen from Russia. "We need to monitor how that develops," the management told investors in the call.

 

To a question on whether the safeguard duty on steel imports that the government imposed recently would be extended when its period expires, the management said the government's investigations are on and the final safeguard duty will be announced in 200 days from the date of initiation. The government had imposed a 12% safeguard on steel imports at the start of the current financial year.

 

"Given the situation that the tariffs uncertainty overall in the world has increased, and many countries have started putting barriers to trade (or) increased barriers to trade, there is more propensity for diversion of (steel) trade into India," JSW Steel's management said. The management argued that there is a case for the government to consider the steel imports safeguard duties favourably in terms of extension as well as in terms of overall duty rate as lower-priced imports are finding their way into India from other countries which were not there in the recent past. 

 

The management said steel inventories, including that of finished goods and work-in-progress, increased during the June quarter. The company rebuilt inventories from the lows of March for better servicing of the customers. But the inventory build-up was also on account of a fall in export volumes in the June quarter due to global challenges and ongoing geopolitical uncertainties, the management said. Some inventories were additionally planned to support the ramp-up of the company's capacities at its subsidiary JSW Vijayanagar Metallics Ltd., according to the management.

 

On its outlook for the September quarter, the management said it was confident that the steel volumes will be higher than that in the June quarter as the planned shutdowns in two blast furnaces in the June quarter "are behind us". But the management said will taking a shutdown of one of its blast furnace at Vijayanagar "starting September" to upgrade the furnace capacity.

 

The management said there was no risk to its full year guidance on volumes from factors such as planned shutdowns in any of its units. Planned shutdowns are "already built into our (guidance) plan," it said.

 

In April, after the March quarter and audited FY25 financials were announced, JSW Steel had guided for steel production volume of 30.5 million tonnes and steel sales volume of 29.2 million tones for FY26. In Friday's post-earnings investor presentation, this guidance was kept intact by the company.

 

The increase in consolidated net debt to INR 798.50 billion at the end of the June quarter from INR 765.63 billion at the end of the previous quarter was largely on account of working capital build-up during the June quarter, JSW Steel's management told investors and analysts in the call.

 

Friday, shares of the company ended flat at INR 1,034.40 on the National Stock Exchange.  End

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.