Stainless Steel Me

JSL Ltd, the OP Jindal Group company that is the country’s largest integrated stainless steel producer, has stopped offering discounts to dealers, pushing prices up by 6% across product categories.

DNA Money spoke to some of the company’s dealers and found prices have jumped at least 6% in categories that JSL operates in. In categories that are completely import-dependent, prices have moved up by 10%.

On the condition of anonymity, a Mumbai-based dealer said, “JSL gave us a 6% discount on the quoted prices till May but that has completely vanished now. So effectively, prices have gone up by 6% in their product ranges.” Another dealer said JSL managed to get the government to agree on anti-dumping duty on all grades of products. “Now, even the stainless steel products that are not made in India are under duty and that’s why people are hoarding the material. Prices are up by 10% for those (imported) products,” he said.

Refusing to comment on the development, JSL said, “The industry is very uncertain right now and we don’t want to make any comments on prices. The earliest we can talk is two months later.”

Requesting anonymity, an analyst from a domestic brokerage said, “JSL has over 70% share in the domestic stainless steel market and is taking full advantage of it by increasing prices. Demand for stainless steel is still not there but JSL is cutting discounts.”

In April, the government imposed anti-dumping duty on all grades of stainless steel imported into India even though many grades are not even produced in the country. The move followed JSL’s argument that dumping was hurting the industry.

After the duty was imposed, the All India Stainless Steel Industries Association (AISSIA), in a letter to the finance ministry, said, “We are greatly shocked that interests of the entire user community of stainless steel coils have been compromised to favour just one large entity, a monopoly at that. The proposed measures by the Directorate General of Anti-dumping and Allied Duties in the commerce ministry are not just protectionist, but favour a single monopolistic enterprise — Jindal Steel. Slapping duties on imports of SS coils from nearly the entire world would encourage JSL to toy with the domestic industry by raising prices at will and holding the entire community to ransom.”

Besides AISSIA, other stainless steel associations such as the Tamil Nadu Stainless Steel Merchants and Manufacturers Association, Stainless Steel Exporters Welfare Association and the Export Promotion Council are also against the anti-dumping duty.

“Jindal doesn’t manufacture width above 1,250 mm, BA finished coils, PVC coated AISI 430, AISI 430, and magnetic type of stainless steel. There are several factories in India making kitchen knives and cutlery and require AISI 420 high carbon (0.28-0.4%) steel, which Jindal is not able to cater to,” they said in response to the government notification. International producers such as ArcelorMittal, Posco, European Union and EUROFER, among others, have also requested the government to exclude variants not produced in India.

The analyst said JSL might have raised prices also because of the hike in nickel rates. “Increase in nickel prices also works in favour of JSL as they increase prices across the board if nickel goes up. Series 300 stainless steel has less nickel than series 100 but the company applies new rates to all products,” he said