India: JSW Flat Steel Output Up, Long Steel Production Down in July

Company’s crude steel production has increased marginally on monthly premises to 1.278 MnT in July’17.

JSW Steel – India’s largest steel maker has recorded marginal increase of 1% in its crude steel output in monthly premises. Company’s crude steel production has moved up to 1.278 MnT in Jul’17 against 1.265 MnT in Jun’17.

However it has observed drop in its crude steel output of 4% Y-o-Y as it declined from 1.337 MnT in Jul’16 to 1.278 MnT in Jul’17.

Flat steel production up 10% M-o-M in Jul’17 – JSW Steel’s flat steel output was recorded at 0.974 MnT in Jul’17 up by 10% M-o-M against 0.889 MnT in Jun’17. On yearly basis, company’s flat steel output has increased by 2%. Major Indian flat steel producers increased prices by about INR 1,500/MT in Jul’17 post GST implementation.

In beginning of Aug’17, the steel mills had raised prices by INR 1,500-2,000/MT and are likely to increase further by INR 1,000-1,500/MT in the near short term.

Long steel output declined 4% M-o-M – JSW Steel’s long steel production stood at 0.217 MnT in Jul’17 compared to 0.225 MnT in Jun’17, down 4% M-o-M. However on yearly basis, JSW Steel’s long steel output has declined 28%.

JSW Steel Production Analysis

Fig in MnT
Source: Company Reports

JSW Steel is India’s largest steel maker in terms of production and achieved 26% Y-o-Y growth in its crude steel output in FY17 with output of 15.8 MnT. The steel maker achieved 100% production guidance laid in the last fiscal and is targeting production of 16.5 MnT in FY18.

The company has three plants located in Vijayanagar, Dolvi and Salem and has a total crude steel making capacity of 18 MnT pa.