LMM Global Steel Information Quick View (2021.10.27)
Cost growth India’s JSW wants to levy energy surcharges
According to Mysteel’s understanding, India’s JSW Steel may introduce surcharges to cope with the strong increase in its production costs.
The joint managing director and chief financial officer of JSW Steel stated that the price of coking coal has risen from US$110/ton to US$400/ton in a short period of time. These increases are difficult to pass on and steel companies are difficult to digest. Therefore, they consider adding some energy. The fee is passed on to the customer.
JSW Steel may follow the example of some European steel companies. In the past year, some European companies have imposed carbon surcharges and energy surcharges on their products.
JSW is currently negotiating with customers how to implement this pricing mechanism, which will be maintained until energy costs return to normal levels.