Scope to increase domestic steel prices hereon: JSW Steel’s Seshagiri Rao

There is a scope to increase domestic steel prices hereon, said Seshagiri Rao, joint MD & group CFO of JSW Steel, on Monday. Rao also said that the company hiked prices by 6.5 percent from April 1 and the future price increase will depend on how recent price increases are absorbed.

Speaking in an interview to CNBC-TV18, he said, “Prices have shot up in the international markets for various reasons. However, it’s difficult to say how much price will go up either in the domestic market or in the global market because there are various dynamics that plays in the steel sector, but compared to the demand growth in India in March, it was quite substantial.”

“Therefore, when demand is strong, international prices are going up and landed cost of imports is very high then there is always a scope for some adjustment in the domestic market but the discount will not narrow down too much in the domestic market,” said Rao.

Talking about Bhushan Power & Steel (BPSL), Rao said, “As far as the consolidation of BPSL in JSW Steel books, it is a joint control so therefore its equity method of consolidation; only profits and losses, the proportionate share will get reflected and not the turnover and line-by-line consolidation.”

“We have implemented the resolution plan. Of course subject to the judgment that has to be adjudicated on the litigations by the Supreme Court, subject to that the litigation plan has been implemented. The shareholding structure as of date is – 49 percent held by JSW Steel in the holding company and the balance 51 percent is held by one of the group companies. So that holding company holds 100 percent of BPSL,” he said.

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