The company reported an increase in crude steel production volume by 6% and improvement in capacity utilization rate from the previous month.
JSW Steel in its recent press release mentioned that its average capacity utilization went up to 88% in Aug’20 from 83% in Jul ’20 and 76% in Jun ’20.
Major highlights are mentioned below-
1. Flat steel output up by 4% m-o-m- Flat steel output increased by 4% on a monthly basis and 15% on a year-on-year basis to 0.980 mn t in Aug ’20.
In Aug ‘20, mills had raised list prices of HRC and CRC thrice last month, by around INR 2000/t in early in the month followed by a hike of INR 500-1000/t and the third increase by INR 1,000/t on limited supply and improving restocking demand.
2. Long steel production down by 3% m-o-m- In Aug ’20, the long steel output fell by 3% m-o-m at 0.232 mn t, and also declined by 20% on a y-o-y basis. In Aug ’20, primary mills raised rebar prices by around INR 2000/t.
3. Crude steel output up 6%- Crude steel output gained by 6% to 1.317 mn t in Aug ’20 and also reported a growth of 5% on an annual basis.
Source: Company data
4. Company aims to reduce export volumes– JSW Vijayanagar plant set an exports target of 0.16 mn t in Sept ’20, and if this target is met fully then it would be 36% lower compared to the actual volume of 0.25 mn t exported in Aug ’20, SteelMint learned from its sources.
On a m-o-m basis, the exports volume in Aug were lower by almost 36% against the actual 0.39 mn t exported in Jul ’20.
JSW Steel’s exports percentage will be reduced gradually to 15% in FY ’21. Company’s focus is on domestic sales on high margins and strong domestic demand.
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