Reports from India suggest that the country's third-largest steel producer, JSW Steel Ltd, is to focus its export drive away from Europe and the US after a decrease in demand from those areas.
The company's director of finance Mr MVS Seshagiri Rao told Reuters: "In India, demand definitely is far better. Worldwide, there is no major improvement. Instead of exporting to Europe and US, we will sell to Africa, Sri Lanka, Nepal and other countries."
Profits plunged at Indian steel firms at the back end of 2008 as sales and margins both took a hit. JSW posted a loss in the December quarter due to foreign exchange losses, lower sales and higher prices of raw material such as coking coal and iron ore.
Negotiations are under way for new coking coal contracts and speculation suggests that steel companies are looking at a price of $100-120 a tonne, compared to $305 last year.
JSW Steel imports all of its coking coal requirements although it buys its iron ore from local sources.
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