JSW Steel recorded standalone crude steel production at 4.10 mn t in Q1 FY ’22, down 2% as against 4.19 mn t in Q4 FY ’21, as per the company’s latest BSE filing. The capacity utilisation rate stood at 91% in Q1, down 2% q-o-q, due to the diversion of liquid oxygen for medical use. However, combined steel production by the company’s India operations, including production by Bhushan Power and Steel and JSW Ispat Special Products Ltd, stands at 4.93 mn t in Q1 FY ’22 compared with 4.37 mn t in Q4 FY ’21.
Joint business operations are mentioned below:
- Bhushan Power & Steel Ltd produced 0.69 mn t of crude steel in Q1 FY ’22 as against 0.04 mn t in Q4 FY ’21.
- JSW Ispat Special Products Ltd’s production stands at 0.14 mn t in Q1, down by 6% q-o-q in comparison with 0.15 mn t in Q4 FY ’21.
Factors impacting production
- Subdued demand in the domestic market: Subdued demand in the domestic market owing to stringent lockdowns in several parts of the country pushed mills to lower the capacity utilisation rate and focus on export markets, especially the European Union and the Middle East amid higher realisation. India’s finished steel exports moved up by 9% in Q1 FY ’22 to 3.557 million tonnes (mn t) as against 3.265 mn t in CPLY, according to provisional data released by the Joint Plant Committee.
- Diversion of liquid oxygen: JSW Steel supplied nearly 65,000 tonnes of liquid oxygen in Q1 FY ’22 for medical purposes from the steel complexes of the company across India which resulted in a reduced capacity utilisation rate of 91% in Q1 FY ’22 as against 93% in Q4 FY ’21.
Near-term outlook
JSW Steel is planning a maintenance shutdown in its hot strip mill-1 (HSM-1) at its Vijayanagar plant for 40-50 days. HSM-1 will be operated at 50% capacity for two months and 50% will remain shut from 15 Jul-15 Sept ’21. HSM-2 is facing a breakdown and will remain closed for 10 days. Thus, production will remain impacted in the near term.
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