JSW Steel Ltd., on Wednesday said its net profits for the July-September period slid 84.3% to Rs 116.95 year compared to Rs 748.76 crore a year earlier, indicating a continuing price pressure due to cheap imports from countries such as China, Korea, and Japan.
The company’s net sales also fell 21.5% during the fiscal second-quarter to Rs10,742.73 crore compared to Rs 13691.87 crore, it said in a regulatory filing to the stock exchanges.
“Indian steel industry continues to suffer from uncontrolled imports at prices significantly lower than domestic prices in exporting countries – especially from Korea, Japan and China; consumption of domestically produced steel was down by 2.3% YoY in 1HFY16 as total steel imports were up by 42% YoY,” it said in a statement. “The finished steel exports also decreased by 26% YoY in 1HFY16.”
JSW Steel said the dumping of steel into the country has created excess availability, which “continues to dent market sentiments and remains a serious threat to the domestic steel industry.”
The government, in September, imposed provisional safeguard duty on import of certain grades of Hot Rolled Coils. JSW Steel said imports are still high in other types of steel products in the value chain, hurting domestic steelmakers. “It is imperative to also impose appropriate duty on all other steel products in the value chain to stop injury to the industry,” it said.