JSW: Steel Output Rebounds on Increased Capacity Utilization

The company has increased its capacity utilization to an average of 83% in May’20 as against 38% a month ago. Also, the company achieved massive growth in its crude and steel production across all categories in May’20. Meanwhile, the company is aiming to achieve capacity utilisation gradually in the upcoming months.

Crude steel output-

The company churned out 1.248 MnT of crude steel in May’20 surged by whooping 122% in contrast with 0.56 MnT in the previous month.

In April the manufacturer produced 0.56 MnT of crude steel, almost 60% lower year-on-year, with capacity utilisation falling 38% in the first full month of the Covid-19 induced lockdown.

On the other hand, the output fell by 14% on a yearly basis as compared with 1.443 MnT in May’19.

Flat Steel output-

The company witnessed a significant increase in its flat steel output by 163% to 0.905 MnT in May’20 as compared to 0.344 MnT in Apr’20. While the same declined by 11% when compared with 1.017 MnT in May ’19. Aggressive bookings for exports to China & SE Asia have kept Indian HRC export market active in the past couple of months.

Long steel output-

There was a tremendous increase in long production by 124% in May’20 to 0.2 MnT in contrast with 0.08 MnT in the previous month. On the other hand, it was down by 44% in comparison with 0.35 MnT in Apr ’20.

Quantity in MnT
Source: SteelMint Research