India Producer Eyes U.S. Mill (Folo) Nippon Steel Prices Find Willing Buyers Steel Maker Profits, Passing on Higher Costs to Car and Ship Sectors BUSINESS ASIA By Bloomberg

JSW Steel, one of the biggest Indian steel makers, plans to buy a U.S. plant for as much as $1.2 billion, its first purchase in the world’s largest economy.

“We’re close to buying a steel-plate mill in the U.S.,” Sajjan Jindal, managing director of the company, said last week in an interview. He declined to comment on whether the target is a plant owned by Jindal SAW, a pipe maker run by his elder brother.

The purchase would allow JSW Steel, based in Mumbai, to ship raw- steel slabs to the United States to make products used by shipbuilders and energy companies, Jindal said. Tata Steel and Essar Steel have made overseas acquisitions to sell more profitable products and win customers outside Asia.

“Indian steel makers are spreading their wings far and wide to hedge against regional cyclicality in prices and demand,” said A. S. Firoz, an analyst with the Indian Steel Ministry.

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