Date:10/01/2007 URL: http://www.thehindubusinessline.com/2007/01/10/stories/2007011005701500.htm

Back Weak coking coal buoys JSW Steel

Reduced coking coal prices and higher sales volumes from its cold rolling mill has propelled interest in the counter of JSW Steel. The stock, which gained by almost 24 per cent month on month, ended the day 3.2 per cent higher at Rs 408.25 on the BSE today.

Analysts with a leading domestic brokerage said coking coal contracts internationally being settled at $98/tonne or 14 per cent lower YoY, will benefit JSW Steel considerably in FY-08, as its contract comes up for renewal in April 2007. The company is also expected to benefit from volume growth as it improves capacity utilisation from 3.8 million tpa from 2.5 million tpa.

Analysts anticipate an improvement in its product mix on account of commissioning its one million tpa cold rolling mill complex in the first-half of FY-08.

Deeptha Rajkumar