JSW Steel rises on the buzz to restart coking coal mining in US
22 November 2016
JSW Steel is currently trading at Rs. 1638.05, up by 13.45 points or 0.83% from its previous closing of Rs. 1624.60 on the BSE.
The scrip opened at Rs. 1650.00 and has touched a high and low of Rs. 1655.00 and Rs. 1632.20 respectively. So far 3807 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 1886.50 on 08-Sep-2016 and a 52 week low of Rs. 868.95 on 27-Nov-2015.
Last one week high and low of the scrip stood at Rs. 1734.45 and Rs. 1617.55 respectively. The current market cap of the company is Rs. 39270.16 crore.
The promoters holding in the company stood at 41.48%, while Institutions and Non-Institutions held 37.54% and 20.97% respectively.
JSW Steel is reportedly planning to restart coking coal mining in the US following sharp rise in prices during the last few months. The spot coking coal prices have more than trebled from $90 a tonne to $310 a tonne since July, on the back of strong demand from China and predictions of worst-ever cyclone in Australia.
Though the increase in coking coal and iron ore prices are eating into the company’s margins it has thrown a great opportunity to restart iron ore and coking coal mines in Chile and the US. The company owns nine coking coal mines with cumulative resources of 123 million tonnes at West Virginia in the US.
JSW Steel is part of the JSW group which, in turn, is a part of the O P Jindal group. JSW Steel is one of the largest steel manufacturing companies in India having units in Karnataka and Maharashtra producing crude steel, long steel and flat steel products.