Mumbai: Prices of stainless steel could remain under pressure in the short term, even as domestic demand stays strong, said Abhyuday Jindal, managing director of Jindal Stainless.
Imports from China, Vietnam and Indonesia have been weighing on Indian prices. These imports are currently at a 5-10% discount to domestic market levels.
"The discounts have, in fact, widened after everyone started blocking China," Jindal said on a call after the company's quarterly earnings.
The domestic stainless steel industry, through the Indian Steel Association, has filed a petition with the Directorate General of Trade Remedies (DGTR) seeking anti-dumping duty protection. The watchdog initiated an investigation in late September, Jindal said.
"The investigation is on, and we are regularly meeting them (DGTR), and are hopeful of a resolution," he said.
Most of the stainless steel entering the country is in the 200 and 300 series, typically used in utensils, pipes, cookware, and food and beverage processing units.
While producers are pushing for quality control and BIS standards for stainless steel, end-users, particularly in the utensils segment, have opposed the move.
JUL-SEP EARNINGS
Jindal Stainless' consolidated net profit for the September quarter rose nearly 33% year-on-year to ₹808 crore, supported by consolidated revenue rising more than 11% to ₹10,893 crore. Earnings before interest, tax, depreciation and amortisation rose 17% year-on-year to ₹1,388 crore.
"With sustained domestic demand momentum, the company remains well-positioned to deliver consistent growth in the coming quarters," it said.
"This domestic growth unfolded amid continued imports of subsidised and dumped stainless steel into India. Through misuse of the FTA route, imports from China and Vietnam continued to flood the market, distorting the level playing field for Indian producers, especially MSMEs," it added.
The company reported results after market hours. Its shares closed at ₹722.90 on the BSE, down 1.4% from the previous close.
Imports from China, Vietnam and Indonesia have been weighing on Indian prices. These imports are currently at a 5-10% discount to domestic market levels.
"The discounts have, in fact, widened after everyone started blocking China," Jindal said on a call after the company's quarterly earnings.
The domestic stainless steel industry, through the Indian Steel Association, has filed a petition with the Directorate General of Trade Remedies (DGTR) seeking anti-dumping duty protection. The watchdog initiated an investigation in late September, Jindal said.
"The investigation is on, and we are regularly meeting them (DGTR), and are hopeful of a resolution," he said.
Most of the stainless steel entering the country is in the 200 and 300 series, typically used in utensils, pipes, cookware, and food and beverage processing units.
While producers are pushing for quality control and BIS standards for stainless steel, end-users, particularly in the utensils segment, have opposed the move.
JUL-SEP EARNINGS
Jindal Stainless' consolidated net profit for the September quarter rose nearly 33% year-on-year to ₹808 crore, supported by consolidated revenue rising more than 11% to ₹10,893 crore. Earnings before interest, tax, depreciation and amortisation rose 17% year-on-year to ₹1,388 crore.
"With sustained domestic demand momentum, the company remains well-positioned to deliver consistent growth in the coming quarters," it said.
"This domestic growth unfolded amid continued imports of subsidised and dumped stainless steel into India. Through misuse of the FTA route, imports from China and Vietnam continued to flood the market, distorting the level playing field for Indian producers, especially MSMEs," it added.
The company reported results after market hours. Its shares closed at ₹722.90 on the BSE, down 1.4% from the previous close.
