Steel producer JSW Steel today said higher raw material prices are likely to keep margins pressurised during the June quarter.
"Coking coal prices have increased to $330 per tonne now from $225 in January-March on an average. Iron ore prices have risen by $50 per tonne compared to last year. This may impact profit margins," JSW Steel Director (Commercial and Marketing) Jayant Acharya told reporters here.
"Iron ore prices have gone up and steel prices have accordingly reacted to this," Acharya said, adding, steel prices will "continue to react".
The company produced 1.64 million tonne of steel during the January-March quarter, while its annual steel production was up 7% at 6.42 million tonne.
The company commissioned its sinter plant, two blocks out of four blocks of coke oven and 300 MW captive power plant at its Vijaynagar unit during the January-March quarter as part of its 3.2 million tonne per annum expansion project.
JSW Steel, which is aiming to become the largest domestic steel producer with 14 million tonne per annum capacity post expansion, said the balance units along with a blast furnace will be commissioned during the ongoing quarter.
Talking about Ispat Industries in which JSW Steel acquired majority stake in January, the company said it has "turned into profit-making company" within a quarter and has reported a net profit of Rs 70 crore.
Ispat is now running at 88% capacity utilisation and had produced 0.73-million tonne of HR-coil during the January-March quarter, it said.
JSW Steel currently holds 49.30% in Ispat Industries.
