JSW Steel has reported an increase in capacity utilization to 89% in Oct ’20, as per a recent release in BSE. In Q2 FY’21, the company reported average capacity utilization of 86% in Q2 FY’2. The crude steel production for the month of Oct,20 was at 1.338 mn t showing a growth of 4% over Sep’20 and 7% over Oct’19.
Major highlights are as follows:
Flat steel production up 6% m-o-m: The company’s flat-rolled production grew by 6% in Oct’20 to 0.976 mn t over 0.92 mn t in Sep’20. According to data maintained with SteelMint, the price spread between HRC-CRC widened to INR 10500/t in Oct ’20 against INR 8000/t in Sep’20. This has been majorly due to tight CRC supplies and strong demand recovery in auto & white goods sectors on account of the festive season.
Long steel output up by 2% m-o-m: In Oct 20, the long steel output grew by a mere 2% to 0.3 mn t over 0.295 mn t in Sep 20. However, on a y-o-y basis, long steel output grew by 16% as the government is undertaking measures to boost Infrastructure sector demand particularly in rural sector and the market sentiments seem positive for upcoming quarters.
Outlook- JSW steel is targeting installed capacity of 26 mn t by end of FY’21. Out of this organic steel capacity growth is expected be around 23 mn t and rest 3 mn t from BPSL. The company expects its downstream units to add further value to the company in next fiscal.
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