JSW Steel has reported an increase in capacity utilization to 91% in Q3 FY ’21, as per recent release in BSE. Last quarter the same stood at 86%. The company also reported increase in its production levels across all segments.
The major highlights are mentioned below:
1. Crude steel output up by 6% in Q3 – On a quarterly basis, crude steel output was at 4.08 mn t up by 6% over 3.85 mn t in the previous quarter. Meanwhile, on a y-o-y basis the same witnessed an uptick by 2% against 4.02 mn t in the same quarter of previous year.
2. Flat steel production up 5% –The Company’s flat-rolled production grew by 5% in Q3 to 2.98 mn t over 2.84 mn t in Q2 FY’21. Also the production volume jumped by 4% against 2.86 mn t in Q3 FY’20.
In the Q3 Oct-Dec quarter, the company has raised its flat steel prices sharply on improved domestic demand from auto and consumer durable sectors. Increase in demand also resulted in a wide gap between HRC and CRC prices which is around INR 9000/t.
3. Long steel output jumped by 22% in Q3 – In Q3, the company’s long rolled product output summed up to 0.93 mn t jumped by 22% against 0.77 mn t in Q2 FY’21. The same reported an increase by 4% against 0.89 in Q3 FY’20.
Revival in residential and property sales as well as new launches in the second half of year 2020 is encouraging. Government policy support like the stamp duty cut in case of Maharashtra has been a very supportive factor for the pick-up in residential sales in this region. Growth in infrastructure resulted to increase in long steel production by mill.
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