JSW Steel- one of India’s largest steel producers- reported its highest ever quarterly exports shipments in Q1 FY’21. SteelMint attended the investor conference call and below are the key highlights of it –
1. Company reported its highest ever quarterly exports- JSW steel recorded 1.58 mn t in Q1 FY’21, which contributed 57% to its total sales, company executives said at an analyst conference.Exports were increased to offset the loss of volume in the domestic market, liquidate inventories and increase cash flows.However, in the current quarter, the share of exports in total sales is likely to fall on domestic demand revival after easing of corona-virus-related restrictions.
2.Company witness net loss in Q1FY’21– The company posted a net loss of INR 582 cr in Q1 FY’21.
3. Saleable steel sales fell by 24% q-o-q in Q1 FY ’21- Saleable steel sales fell by 24% q-o-q in Q1 FY ’21 to 2.8 mn t. Net sales realization fell by 12% q-o-q on a higher proportion of semis and export volumes.
4.Auto contract prices to revise in Q2–Steel companies are still engaged in discussions with automakers on contracted auto-steel prices for Q2 FY’21 after prices were rolled over in Q1.JSW said steel prices are expected to be revised but did not give details.
Automakers are facing sharp erosion in demand for over a year now and are reluctant to accept higher steel prices. An increase in domestic and global HRC prices would encourage Indian mills to push for increase in auto-steel prices for this quarter.
5.Lower input costs-Imported coking coal prices are likely to come down significantly by around $20-25/t in Q2 FY’21 after gaining by $4/t q-o-q in Q1 FY’21, said JSW. India is among the world’s largest coking coal importers, with mills meeting more than two-thirds of their coking coal needs through imports.
The company may also get additional cost savings and secure iron ore supply for its steel plants, as it starts up new mines in Karnataka and Odisha.
6. Planning to produce 1.2 mn t iron ore output from Odisha mines in Jul’20– JSW Steel has started iron ore production at all four of its newly-acquired mines in Odisha. The company expects to produce 1.2 mn t of iron ore from Odisha mines in Jul’20.
7. JSW to commence operations at 3 new Karnataka iron ore mines in Q2– JSW will also start operations at three Karnataka iron ore mines in this quarter after getting mining leases soon. JSW expects to produce around 7-8 mn t iron ore from nine mines in Karnataka in FY ’21, which will be used at its Vijayanagar plant. Captive iron ore production from Odisha mines will be utilized primarily for Dolvi and Salem units.
8. Amendment in mining law expected– Amendment in mining law is expected soon, said JSW official in a quarterly conference call conducted today. National Mineral index for iron ore is expected to be rolled out which may replace the existing IBM iron ore price methodology. It would be interesting to see how the industry will shape up after the amendment.
9. Capacity expansion plan in Dolvi remains intact – JSW Steel’s plan for doubling steelmaking capacity from 5 mn t pa to 10 mn t pa at its Dolvi plant remains intact. It will enhance the capacity of the flat products portfolio and it is scheduled to commission in H2 FY ’21.
10. JSW coated steel performance in Q1FY’21- During the quarter, JSW steel coated products registered a production volume of 0.30 mn t against 0.44 mn t in previous quarter. Meanwhile sales volume stood at 0.33 mn t in Q1FY21 against 0.47 mn t in previous quarter.
11. Plans to set up iron ore terminal – JSW Infrastructure to set up 18mn t pa iron ore terminal at Paradip which will help in transporting iron ore from Odisha captive mines to all steel units.
Leave a Reply