JSW Steel’s crude steel output was recorded at 1.332 mn t in Nov ’20, marginally low against 1.338 mn t in Oct ’20. However, the company continued to operate at 89% production capacity, according to its recent BSE filing. The shortage of Iron ore remained a constraint in Nov’20 to achieve higher capacity utilization.
However, crude steel output increased by 3% on an annual basis compared with 1.290 mn t in Nov ’19. Meanwhile, the company recorded a marginal decline in production across all segments.
Below are the key highlights:
1.Flat-rolled production down by 2% m-o-m- In Nov, the manufacturer produced 0.961 mn t of flat-rolled products in comparison with 0.976 mn t a month ago. On the other hand, production was 6% higher on an annual basis.
2.Long steel output declined by 2% m-o-m- Witnessing a 2% decline in Nov, the long steel output stood at 0.295 mn t as against 0.301 mn t in the previous month. Also, there was a 1% dip in the output volume on an yearly basis.
Two price hikes announced so far in Dec’20 – The company has however increased its flat steel prices twice by INR 2,000/t at the beginning and INR 1,500/t recently in Dec ’20.
Major driving forces were-
- Strong demand from the automotive industry.
- Recovery of other major downstream industries like PEB, Oil and Gas and power and energy.
- Absorption of previous hikes in the trade segment.
- Supply constraints in trade markets.
Outlook- Company is trying to ramp the production and will operate at 95% capacity in Q4. Meanwhile, the company expects the price to remain strong in the near term, learned from webinar recently organized by SteelMint.
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