India : JSW Records Average Capacity Utilization of 38% in Apr

JSW Steel has released its monthly steel output results today, which reported a fall in crude steel and finished steel output in Apr’20 over the previous month.

Crude steel output- JSW Steel’s crude steel output stood at 0.563 MnT in Apr’20 and it registered an average capacity utilization of 38% in Apr’20. However, last month the same stood at 1.24 MnT in Mar’20. The fall has been attributed to various disruptions like the lower utilization of the production capacity, transportation restrictions, strict measures in the containment zones, and overall weak demand with the extension of the lockdown period in the country.

Long steel output – The company’s long steel output stood at 0.089 MnT in Apr’20, dropped significantly on a monthly premise over 0.300 MnT in Mar’20. Meanwhile, Indian large-scale mills had kept the rebar prices for 12 mm unchanged for Apr’20 owing to nationwide lockdown announced to prevent the spread of COVID-19.

Flat steel output – The Company’s flat steel output plunged to 0.344 MnT in Apr’20 in contrast with 0. 863 MnT in Mar’20. Indian steel mills had announced a roll-over in domestic HRC prices in Apr’20 amid mute demand.

Meanwhile, the government has extended the lockdown until 17th May, however, the company has secured requisite approvals, and has accordingly commenced operations, and is gradually ramping up the capacity.

JSW Steel Production Figures

Source: Company report, SteelMint Research