JSW Steel dips on output cut at Vijaynagar plant

Mumbai : JSW Steel has dipped more than 3% to Rs 599 in noon deals, extending Monday’s over 2% fall after the company cut output by 70% at its Vijayanagar plant to 3 million tonnes (MT) from 10 MT, as raw material supply was disrupted after the Supreme Court ordered NMDC to e-auction iron ore from its Karnataka mines.

“The company’s plant in Vijaynagar is compelled to scale down production to 30% of its capacity due to abrupt stoppage of iron ore. The supply disruptions of iron ore since July 2011 have been causing irrecoverable damage to steel industry in this region," JSW Steel said in a filing to the stock exchanges.