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JSW Steel
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JSW STEEL Says To Reduce Total Production By About 20 Pct From November
Posted by :
Chander55Tracked by: 0 Boarder
Economic Times, Delhi Edition, today gives following news:
JSW Steel expects 12% rise in sales
JSW Steel, India’s second largest private steelmaker, expects a 10-12% growth in sales during 2008-09 even as it slashed production by up to 20% early this month. The company has no plans to cut production further and will start operating at full capacity from January ’09 onwards.
“We clocked 18% growth in sales during the first half of current fiscal and expect close to 12% growth for the entire fiscal,” JSW Steel managing director Sajjan Jindal said. ...
In reply to:
JSW STEEL Says To Reduce Total Production By About 20 Pct From November
Posted by :
nevis
Nothing is favourable for business now, and especially for the steel sector. When you say management`s motives - are you talking about the 20% reduction or the new plant in WB or something else ? 
Steel Billet-LME June08-1200;Today 280
Posted by : HK65Tracked by: 0 Boarder
I am accepting your short term views over Jsw price and I know it may go down to 10% of its peak, i.e. nearly 155 and at the same time it may give a jurk below that too.. Interestingly all metal shares are subjected to high bear pressure, despite the fact that the low prices will help to increase the demands. Steel producers are not discounting the cheap raw material and fuel, they want to reduce their burden off to consumers but ultimately they will have to face the reality and make discounts in the line of international prices.
Govt at the same time giving excuse of covering losses due to high prices and not reducing fuel prices, infact basic support of the inflation is the fuel and once they make the changes in their policy, things will be much better.
Indian engine is not going to stop even if the Americans slow down, our own population and internal strength is not yet bad......
In reply to:
Steel Billet-LME June08-1200;Today 280
Posted by : Arunad
Dear, you are correct but r u aware that similar products as that of JSW i.e. HR Coils are being shipped at 450 USD from Ukraine and China. 5 % custom duty and ruppee going to touch 51 might be a good sign in short term but still HRC price for imported landed being at 27000 is with gap of more than 7000 than Indian HRC of sail,tata,JSW,ispat etc.Thus still prices are being considered more and Market is reacting towards it with resistance. Chidambaram has acted against the wish list of steel industry as Industry had also acted against his wishes when market prices were asked not to increase but Industry acted against it,profittering at the cost of Public.JSW is heading for below 200 and my advice to investors in this scrip is for EXIT now or suffer huge loss further.
Steel Billet-LME June08-1200;Today 280
Posted by : ArunadTracked by: 0 Boarder
Dear, you are correct but r u aware that similar products as that of JSW i.e. HR Coils are being shipped at 450 USD from Ukraine and China. 5 % custom duty and ruppee going to touch 51 might be a good sign in short term but still HRC price for imported landed being at 27000 is with gap of more than 7000 than Indian HRC of sail,tata,JSW,ispat etc.Thus still prices are being considered more and Market is reacting towards it with resistance. Chidambaram has acted against the wish list of steel industry as Industry had also acted against his wishes when market prices were asked not to increase but Industry acted against it,profittering at the cost of Public.JSW is heading for below 200 and my advice to investors in this scrip is for EXIT now or suffer huge loss further....
In reply to:
Steel Billet-LME June08-1200;Today 280
Posted by : HK65
It was at $250 ( bottom bedore 10 days ) went to $400 and now consolidating between 325 to 350... recheck, the graph is available over LME and it never reached 243 as you mentioned.
These are never matched with our Indian markets where its still much on higher side.... Its a time of sudden breaks applied to all projects in over blown fear... I repeat over blown fear.. those are the traders of fear at the centre of the criminal.. wait till the dust settles but the opportunity will not be there, it will follow the dust... :))
Steel Billet-LME June08-1200;Today 280
Posted by : HK65Tracked by: 0 Boarder
It was at $250 ( bottom bedore 10 days ) went to $400 and now consolidating between 325 to 350... recheck, the graph is available over LME and it never reached 243 as you mentioned.
These are never matched with our Indian markets where its still much on higher side.... Its a time of sudden breaks applied to all projects in over blown fear... I repeat over blown fear.. those are the traders of fear at the centre of the criminal.. wait till the dust settles but the opportunity will not be there, it will follow the dust... :))...
In reply to:
Steel Billet-LME June08-1200;Today 280
Posted by : Arunad
So today it is further down to 243, still it is expected tobe down further by another 30% in next 30 days. Steel prices are going down,sales are not upto the mark. Demand projections can not be met.Ukraine and China steel prices are ruling around 450USD. JSW,Bhushan,Tisco,Uttam etc all are facing problem.Sail has stock of more than 10lac MT finished steel.Imagine value erosion.Better exit and wait for oppertunity.
Steel Billet-LME June08-1200;Today 280
Posted by : ArunadTracked by: 0 Boarder
So today it is further down to 243, still it is expected tobe down further by another 30% in next 30 days. Steel prices are going down,sales are not upto the mark. Demand projections can not be met.Ukraine and China steel prices are ruling around 450USD. JSW,Bhushan,Tisco,Uttam etc all are facing problem.Sail has stock of more than 10lac MT finished steel.Imagine value erosion.Better exit and wait for oppertunity....
In reply to:
Steel Billet-LME June08-1200;Today 280
Posted by : HK65
Friend,
Cheap steel is surely a good sign for emerging economy like India and at the same time its little hard for steel companies during the current termoil. Its a cycle, JSW touched 180+ in 2006 and again in 2008.. demand will rise once again due to cheap prices and the as a result the prices of steel will bounce back.
Human race can not do anything without steel... :))
So be a little optimistic.. don`t fall prey to all these analysts... world population is rising and so the need of steel will.. let them bark to ward you off... try to get in at the bargain rates..
If not ... Go and build your house soon, before it gets out of the reach...
It has already bounced back from 250 and now at 400 on LME.. check.
BSE Announcements on JSW Steel
Posted by : MMB MessengerTracked by: 0 Boarder
JSW Steel Ltd has informed BSE regarding a Press Release dated November 17, 2008 titled "JSW Building Systems Ltd enters into JV with Severfield Reeve Structures Ltd of UK"...
NSE Announcements on JSW Steel
Posted by : MMB MessengerTracked by: 0 Boarder
Steel Billet-LME June08-1200;Today 280
Posted by : ArunadTracked by: 0 Boarder
Economic turmoil has started affecting indian steel industry now. ET has reported that ISPAT has defaulted on loan repayment schedule of restructured settlement payment of UTI. As I understand Ispat is said tobe also defaulting payment of MSEB and other financial institutions. Similar situation will be for other steel plants also restructured under CDR exercise. Wait for further news to take decision on entering this scrip....
In reply to:
Steel Billet-LME June08-1200;Today 280
Posted by : HK65
Friend,
Cheap steel is surely a good sign for emerging economy like India and at the same time its little hard for steel companies during the current termoil. Its a cycle, JSW touched 180+ in 2006 and again in 2008.. demand will rise once again due to cheap prices and the as a result the prices of steel will bounce back.
Human race can not do anything without steel... :))
So be a little optimistic.. don`t fall prey to all these analysts... world population is rising and so the need of steel will.. let them bark to ward you off... try to get in at the bargain rates..
If not ... Go and build your house soon, before it gets out of the reach...
It has already bounced back from 250 and now at 400 on LME.. check.
Steel Billet-LME June08-1200;Today 280
Posted by : ArunadTracked by: 0 Boarder
Cheaper steel will be increasing demand..thats right..but when..JSW is not in steel required for building construction i.e. long steel..It is in flat steel. Ukraine and China last booking as per Steel Today are at 450 USD which mean Rs 22000 in India. Same is being sold at 33000 by JSW and SAIL and they are not finding buyers. Definitely something is wrong with either their marketing or they are afraid ofloosing domestic market also in liew of Government support.Central Government is facing problem of inflation. They have to bring that down. When Government was asking them to help,they were profiteering and now they are asking for import duty on importes steel. They have already lost their export market. Exit at this stage and reenter at lower price is right strategy....
In reply to:
Steel Billet-LME June08-1200;Today 280
Posted by : HK65
Friend,
Cheap steel is surely a good sign for emerging economy like India and at the same time its little hard for steel companies during the current termoil. Its a cycle, JSW touched 180+ in 2006 and again in 2008.. demand will rise once again due to cheap prices and the as a result the prices of steel will bounce back.
Human race can not do anything without steel... :))
So be a little optimistic.. don`t fall prey to all these analysts... world population is rising and so the need of steel will.. let them bark to ward you off... try to get in at the bargain rates..
If not ... Go and build your house soon, before it gets out of the reach...
It has already bounced back from 250 and now at 400 on LME.. check.
Steel Billet-LME June08-1200;Today 280
Posted by : HK65Tracked by: 0 Boarder
Friend,
Cheap steel is surely a good sign for emerging economy like India and at the same time its little hard for steel companies during the current termoil. Its a cycle, JSW touched 180+ in 2006 and again in 2008.. demand will rise once again due to cheap prices and the as a result the prices of steel will bounce back.
Human race can not do anything without steel... :))
So be a little optimistic.. don`t fall prey to all these analysts... world population is rising and so the need of steel will.. let them bark to ward you off... try to get in at the bargain rates..
If not ... Go and build your house soon, before it gets out of the reach...
It has already bounced back from 250 and now at 400 on LME.. check....
In reply to:
Steel Billet-LME June08-1200;Today 280
Posted by : Arunad
LME traded Steel billets 3 months @280 USD per MT whereas in June08 it traded at 1200 USD per MT.Imagune loss of turnover in current as well as coming qtr. There will be simultaneous reduction in GP as well as NP.All future growth potential has to be kept in abeyance and in reality all steel companies are facing losses and finding very difficult to maintain productions and expences. huge devolvement of committments are there. As such as steel is melting like icecream,before it melts fully,exit is right choice.
JSW STEEL Says To Reduce Total Production By About 20 Pct From November
Posted by : ArunadTracked by: 0 Boarder
Why to compare P/E based on last announced results. Shares valuation has tobe on its future earning potential.When future earning isto be -ve, than where is P/E. Losses will be there in next 2 qtrs . production cut and stock value erosion will definitely affect the valuation. Better wait for share tobe below its book value and wait for further discounting to enter at a time when better news of steel revival is there....
In reply to:
JSW STEEL Says To Reduce Total Production By About 20 Pct From November
Posted by : Chander55
The fall is sure. But I doubt it will be so fast. Last time it took support at Rs 171. This time more bad news has come and it may go lower still. Presently its P/E is double than Tata Steel which seems to be a better choice if some investor wants steel stock.
multibaggerstockadvisor.blogspot. com
Posted by : GuestTracked by: 0 Boarder
fresh stake in this sector would be worthy or not could be easily known from the title of this message and could be relied upon...
JSW STEEL Says To Reduce Total Production By About 20 Pct From November
Posted by : nevisTracked by: 0 Boarder
Nothing is favourable for business now, and especially for the steel sector. When you say management`s motives - are you talking about the 20% reduction or the new plant in WB or something else ?...
In reply to:
JSW STEEL Says To Reduce Total Production By About 20 Pct From November
Posted by : boldy
The scrip is likely to see a bottom of Rs.100 or so in a weeks time feom now, Management`s motives are not very positive snd favourable for business currently
JSW STEEL Says To Reduce Total Production By About 20 Pct From November
Posted by : Chander55Tracked by: 0 Boarder
The fall is sure. But I doubt it will be so fast. Last time it took support at Rs 171. This time more bad news has come and it may go lower still. Presently its P/E is double than Tata Steel which seems to be a better choice if some investor wants steel stock.
...
In reply to:
JSW STEEL Says To Reduce Total Production By About 20 Pct From November
Posted by : boldy
The scrip is likely to see a bottom of Rs.100 or so in a weeks time feom now, Management`s motives are not very positive snd favourable for business currently
Buy JSW Steel, target of Rs 586: Karvy
Posted by : ArunadTracked by: 1 Boarder
Citi has estimated decline in HRC prices by 39% in 2009 . HRC is main product of JSW. Effect of 39% reduction in HRC prices on JSW GP and NP may be bringing JSW back to square from where it had started i.e. once again on doors of CDR. Steel demand world over is declining with non availability of credit. Similar conditions will be there for Bhushan as well.It is better to take exit from steel at this stage and to wait for further downfall of 30 to 40 % to enter again after 9 to 12 months. ...
In reply to:
Buy JSW Steel, target of Rs 586: Karvy
Posted by : boldy
Your intention of getting the investors to exit from JSW steels is malicious as it is, Karvy had given a target of Rs.586, they would have done enough research to make such comments on the target
You probably had failed to buy JSW at lower levels and hence want to play down on the stock, for your information Jindals are a major group of companies and institutional finance should come easily with the recent RBI action in the liquidity front, if one were to look at the FII holdings in JSW STEEL nowhere is there an indication that the FII`s had expressed their dissatisfaction with the company so far
if you have any specific and authentic proof kindly put it on this board please
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