JSW Steel shares hit by fears of Karnataka plant closure, down 6 per cent

Shares of JSW Steel slumped over six per cent on Wednesday, also dipping to an all-time low during the day, after the company said its Karnataka facility may face a complete closure due to acute shortage of iron ore.

The company on Tuesday said its Karnataka unit may come to a complete closure due to acute shortage of iron ore - a development that could lead to shortage of steel in the domestic market and increase in prices.

The company resorted to a massive production cut of 70 per cent in the Vijayanagar plant in Karnataka due to shortage of iron ore after the Supreme Court imposed a ban on mining in the state.

SPECIAL: JSW Steel needs some nerves of steel

Shares of the company opened on a weak note in an already bearish market and then slipped 6.63 per cent to Rs 570 on BSE. They tanked 6.51 per cent to a low of Rs 570.65 on the National Stock Exchange.

"We may have to shut entirely (Vijayanagar plant)...There is a good possibility of that (closure) if the situation does not improve," JSW Vice Chairman and MD Sajjan Jindal said.

Meanwhile, Steel Secretary P K Misra has said that the government will present a fact-sheet before the apex court on how many units have been closed or have resorted to production cut. He sought inputs from the units in the state for the same.