Jindal Stainless (JSL), the country's largest stainless steel maker, has refused to enter into a long-term contract with global rail wagon-maker Bombardier for supplying high-grade alloy, citing volatility in nickel prices.
"We cannot do a fixed-price contract with Bombardier for supplying high-grade 300 series stainless steel due to volatility in nickel prices," JSL Director (Strategy & Business Development) Arvind Parakh told PTI.
Nickel, a vital input for making stainless steel, has fallen to $10,000 a tonne from the peak of $25,000 a tonne in 2008.
Canada-based Bombardier, which has bagged an order from the Delhi Metro for constructing 424 rail coaches, has been in talks with JSL for high-grade stainless steel, to be used for the metro project.
With JSL averse to the long-term supply, Bombardier has warned the order may go to rival firms like Outokumpu and Posco. "We have contracts with global stainless steel companies. JSL has to keep that in mind," Bombardier Transportation India Managing Director Rajeev Jyoti said.
Last week, JSL had said it may soon start supplying about 1,000 tonnes of the required stainless steel, costing around Rs 150 crore, to Bombardier. JSL supplies components to the multi-national firm at its Gujarat facility.