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Sajjan Jindal Chairman JSW Group expects improvement in steel prices in near-term

24 Sep, 2021 by Special Correspondent

JSW Group chairman Sajjan Jindal shared positive demand and price outlook for the Indian steel sector at the JP Morgan India Investor conference. On the outlook for the domestic steel industry, he sees India having the opportunity to become a large steel exporter as various growth projects are currently under the implementation stage.

Over steel demand, he expects that to improve from the current levels in the near term as he is hopeful that it might bear a consideration across Steel, Cement, and Renewables demand. 

On steel prices, he says that the experience is such where he has never seen price differentials as those prevailing now. Traditionally Indian steel prices have been higher vs. China, which are now at a discount he adds. 

On the ESG theme, he says that it offers both opportunities as well as challenges. Mr. Sajjan Jindal expects ESG and carbon to become even more important from here and highlights that JSW Group has ESG and Carbon at the core of its investment decisions. 

He expects India’s steel demand to improve once the festival season starts which should drive some steel price improvement as well. He highlights that the domestic Indian steel prices are still at discount, which is currently +15% indifferent to the landed steel prices.

This price differential should allow room for some improvement. He expects infrastructure spending to remain strong with a pick-up in spending which should augur well for steel demand in India. He expects that flat steel demand growth will be structurally stronger over the coming years.

Source: Times Now