India’s Jindal Stainless Limited (JSL), the largest domestic stainless steel producer, has cut its volume growth forecast for the second time in the current fiscal year, owing to the subdued export market, JSL managing director Abhyuday Jindal said in a statement on Friday, January 31.
The company now sees growth for the current fiscal year at around 10 percent, down from the 15 percent it had forecast in the previous quarter. At the start of the fiscal year, the company had estimated a 20 percent growth in volumes, he said.
“Definitely the US and Europe have slowed down significantly for us, and, whatever exports we were able to do, were in the remaining geographies. The volume growth between April and December has been close to eight percent, of which 86 percent was from the domestic markets,” he said.
“We will have to see what happens with tariffs in the US. If the US goes heavy on China in terms of tariffs, it can further open up the US market for the company. At the same time, our competitiveness in other markets will be reduced given that China’s exports to these regions will grow,” he said.
“Against this backdrop we will definitely be revising, or at least taking a relook on our capex. It will be a very cautious approach,” Jindal said.