To offset the rising input cost, domestic steel giant JSW Steel is planning to levy a surcharge on sale of its steel products to its long-term OEM (original equipment manufacturer) customers, according to a top company official.
JSW Steel will be the first company to introduce the concept of surcharge to the domestic steel market. There is a huge pressure on the cost of production.
Cost of per tonne steel production went up by 19 per cent or Rs 6,600 per tonne quarter-on-quarter in July-September 2021, Seshagiri Rao, Joint Managing Director and Group CFO, JSW Steel, said.
There is a huge pressure on the cost of production. The rate of coking coal — a key steelmaking raw material for which players remain dependent on imports — has also gone up from USD 120 a tonne to USD 400 a tonne in just four weeks, he toldInternet Explorer Channel Network