Extending Tuesday's losses, JSW Steel has shed nearly 4% to Rs 588 in trade today as a crunch in iron ore supply might force it to shut its Vijaynagar plant in the Bellary district in Karnataka.
According to reports, the company cut output by 70% at its Vijayanagar plant to 3 million tonnes (MT) from 10 MT, as raw material supply was disrupted after the Supreme Court ordered NMDC to e-auction iron ore from its Karnataka mines.
“The company’s plant in Vijaynagar is compelled to scale down production to 30% of its capacity due to abrupt stoppage of iron ore. The supply disruptions of iron ore since July 2011 have been causing irrecoverable damage to steel industry in this region," JSW Steel said in a filing to the stock exchanges.
The scrip opened at Rs 608 and so far has touched a low of Rs 587. Around 118,276 shares have changed hands on the BSE counter till 0940 hours.