The company is looking to expand capacity further to 5.2 million tonnes per annum.In an interview to CNBC-TV18, Neeraj Singal, MD, Bhushan Steel said, " New capacity is likely to come on stream in March."
He further said that the company which has debt of around Rs 20,000 crore is looking to de-leverage its balance sheet.
The company has earlier said that it is in the process of raising around USD one billion.
Below is an edited transcript of Neeraj Singal's interview on CNBC-TV18
Q: A lot of your peers like JSW and Essar, have increased prices in January 2013, what about you? Can you increase prices at this point in time? Does the demand scenario allow that and by how much? If that is the case, would it be sustainable for you?
A: Definitely, we look at price increase for this month. We hope that we will be able to increase prices by Rs 1,000 a tonne because there has been a while since we have been able to increase prices in last year. Going forward, this year seems to be much better and there will be a price increase this month.
Q: If you increase prices then you are now at par with imported steel prices. So is that the cap now? Can you do anything further?
A: In the last 15-20 days, globally, the steel prices have increased. China has increased by about USD 40 and except Europe everywhere else there is a better outlook for steel. China has already increased the prices so there is a gap of about USD 40-50 between the imported coils and the domestic prices. So there is a clear case of a price increase, maybe Rs 1000 this month and Rs 1000 by next month or March. There is a definite scope of increasing the prices.
Q: Will this help margins because there is a little bit of levy way coming from China increasing prices. Is there a minor uptick coming in coking coal and iron ore prices? Will the global prices have an impact on your raw material cost?
A: It still makes a stronger case for price increase because now iron ore prices and coking coal prices have started looking up, but last year was very depressed and the steel prices fell down more than the raw material prices.
This year, going forward, the steel prices have to increase but the raw material price is stable. I foresee that there will not be much increase in coking coal and iron ore prices because Europe and America being down, that way the iron ore and coking coal price, I don't see very high increase in prices of those commodities.
Q: You have some amount of capacity coming on board in Orissa at this point in time. What sort of capacity would it bring for Bhushan Steel as a whole and how much utilisation do you expect based on what the demand scenario is looking like at this point in time and how much do you envisage it to increase?
A: We presently have cold roll facility of about 1.4 million tonnes which is virtually operating at full capacity at about 100 percent. Our new steel plant which started in late 2010 is 2.2 million tones and is operating at about 75-80 percent. By March 2013, we will be commissioning our blast furnace which is a 3 million tonnes expansion and would take our capacity by end of March 2013 to about 5.2 million tonnes.
The cold rolling capacity would go up to about 2 million tonnes. So as on April 1, we should be 5.2 million tonnes of hot rolled coil and 2 million tonnes of cold rolled coils and about 0.4 million tonnes of petroleum pipes and API pipes.
Anda sedang membaca artikel tentang
New capacity to go on stream by March: Bhushan Steel
Dengan url
https://kesehatanda.blogspot.com/2013/01/new-capacity-to-go-on-stream-by-march.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
New capacity to go on stream by March: Bhushan Steel
namun jangan lupa untuk meletakkan link
New capacity to go on stream by March: Bhushan Steel
sebagai sumbernya
0 komentar:
Posting Komentar