InvestorQ : Can you tell me about the special surcharge that JSW Steel is planning to levy on its customers?
Lavanya Subramanian made post

Can you tell me about the special surcharge that JSW Steel is planning to levy on its customers?

Answer
image
Anamika Sodhani answered.
1 month ago
Follow

JSW Steel, part of the Sajjan Jindal group and among India’s foremost integrated steel manufacturers, is planning to levy a surcharge on sale of steel products. To begin, this surcharge will be limited to its OEM (original equipment manufacturers) customers. The idea of this levy is to partially offset the rising input costs. Global ore and coking prices have shot up sharply and Indian steel companies are bearing the brunt.

JSW Steel will be the first to introduce this concept of OEM surcharge in India, although this concept is quite common in Europe. According to Seshagiri Rao, CFO of JSW Steel, the cost of steel production has spiked up 19% during the September quarter by Rs.6,600 per tonne. Steel makers, therefore, are left with no choice. Coking coal, which constitutes 40% of the cost of steel, has shot up from $120/tonne to $400/tonne in 4 weeks.

2 Views