Integrated Indian steel major JSW Steel has set a February 2021 total sales target of a little over 9 lakh tonnes from its flagship Vijayanagar plant, which is actually lower from the planned sales target of about 9.60 lakh tonnes set for the previous month of January. Actual total sales in January, however, were lower from the plan at around 9.05 lakh tonnes.
The steel major’s production target for slabs and billets in the current month of February, sources indicate, is also somewhat lower from the provisional data of January. The total slabs and billets production for February, SteelMint understands, is at around 9.5 lakh tonnes against the provisional figure of around 1 million tonne (mnt) in January. Planned slabs production in February is around 7 lakh tonnes and billets, at about 2 lakh tonnes. In January, planned slabs output was at almost 8 lakh tonnes and billets, at a little more than 2 lakh tonnes.
Interestingly, in the about 9 lakh tonnes of total sales planned in February from the flagship Vijayanagar plant, JSW Steel is looking at a little less than 2 lakh tonnes in export sales against a planned 1.35 lakh tonnes in January and actual exports of near-about 1.50 lakh tonnes in this first month of the new calendar. Domestic planned sales in February comprise the balance which are lower from the planned 8.30 lakh tonnes in January and achieved sales of nearly 7.50 lakh tonnes.
It seems, December, 2020’s planned and actual exports were also much lower compared to the February figures, at around 1.30 lakh tonnes planned and 1.50 lakh tonnes in actual sales.
Market sources assume that all three factors – lower planned February sales and production targets along with higher exports focus in the same month – point to a subdued domestic demand scenario.
Queries sent to senior officials at JSW Steel for comments went unanswered.
Steel consumption, production down m-o-m
As per official data, India’s overall finished steel consumption in January, 2021 was 2.22% lower at 9.24 mnt m-o-m over December, 2020’s 9.45 mnt. Crude steel production in January, 2021 was 3.16% down m-o-m at 9.49 mnt over December, 2020’s 9.8 mnt. Again, both indicate that perhaps the domestic market is not too exciting at present.
A source told SteelMint that, “The domestic market has become somewhat subdued. That is why more volume is being diverted towards exports. Demand is quite low and that is why JSW Steel’s production plan for February has also been reduced.”
~Madhumita Mookerji
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