Jindal Stainless (JSL) and South Korean steel maker Posco are jointly planning a marketing arrangement for a grade of stainless steel that JSL claims to have been particularly successful in commercializing.
JSL would benefit from this proposed arrangement as it could access markets through the South Korean steelmaker’s global sales network and proprietary technology in the future.
JSL will supply ‘200 grade’ stainless steel to Posco’s rerolling units in Thailand and Vietnam. The use of this grade of stainless steel which contains low quantities of nickel and chromium has doubled in South East Asia, after prices rose sharply in recent years.
The agreement with Posco will help stabilize production of JSL. The Indian market has slowed considerably from what was expected.
Last year, JSL produced nearly a million tonne of stainless steel and it plans to increase output. Much of this, close to 40 percent, will be exports, reports indicate.
Further, both the firms plan to set up a nickel smelter jointly in Indonesia, where JSL is already present. Nickel is a key anti-corrosive ingredient in stainless steel making but India does not have sizeable nickel resources.