JSW may cut prices to match global rates

JSW Steel, India’s third-largest producer, may cut prices for a second month because of a decline in global costs of the alloy.

“Spot-market prices may be revised downward,’’ said Jayant Acharya, vice- president of marketing, in a phone interview today.

The extent of the cut will be decided “soon.’’ Slowing demand from manufacturers and builders is driving down steel prices and forcing producers including ArcelorMittal to consider output cuts.

The company, the world’s biggest steel mill, said last month it may reduce production by 15 per cent in Europe and the US to support prices.

“I would expect hot-rolled prices to come down in excess of $100 a tonne,’’ said Ankit Miglani, finance director at Uttam Galva Steels, India’s largest galvanized-steel producer after JSW.

“We’ll adjust our prices accordingly.’’ Steel Authority of India (SAIL), the nation’s second-largest producer, plans to lower flat-product prices, according to a report, citing officials it didn’t identify. JSW Steel cut prices by Rs 2,000 ($44) a tonne last month.

The company’s stock dropped 5.5 per cent to Rs 455.95 in Mumbai. The shares slumped 46.4 per cent in the three months ended September 30, the most since the quarter ended September 2002.