Tough to meet production guidance due to iron ore shortage: JSW Steel
Overall YoY basis there is definitely a growth in production. However, the production guidance which we have given of 16 million tonne, it appears to be tough to reach that because of shortage of iron ore in India,” said Seshagiri Rao, Jt MD and Group CFO, JSW Steel in an interview with CNBC-TV18.
“We are eagerly waiting for the Bhushan Power and Steel (BPSL) resolution,” said Seshagiri Rao, Jt MD and Group CFO, JSW Steel in an interview with CNBC-TV18.
“It is very unfortunate that it is getting delayed. We are very much committed to the resolution plan,” he said.
“We are constantly in talks with the CoC (Committee of Creditors) to find some solution to implement the plan as early as possible,” he said.
He said production was improving both in India as well as globally.
“Overall the steel restocking cycle has started. During the COVID period all the inventories either at the service centres or with the customers or with the steel companies got exhausted. So this restocking cycle led to shortage of steel across the globe notwithstanding the production improvement,” he said.
“Iron ore shortage is also one of the reasons why the production is not able to keep pace with the improvement in demand. These are two major reasons because of which we are seeing very strong recovery in steel prices,” he said.
The company has seen a growth in production in October-November year-on-year. “Overall YoY basis there is definitely a growth in production. However, the production guidance which we have given of 16 million tonne, it appears to be tough to reach that because of shortage of iron ore in India,” he said.
The company has taken a hike of Rs 2,500 per tonne in the month of December, he mentioned.
For entire discussion watch video...
(Edited by : Santosh Nair)
First Published: Dec 4, 2020 12:19 PM IST
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