JSW Steel has reported an increase in capacity utilization to 86% in Q2 FY ’21, as per recent release in BSE. With this the company’s capacity utilization has come in line with the pre-COVID level of 85% in Q2 FY ’20, witnessing a quantum jump from 66% capacity utilization in Q1 FY’21 due to the pandemic.
Key highlights –
- Flat steel production up 5% y-o-y – The company’s flat-rolled production grew by 5% in Q2 to 2.84 mn t over 2.71 mn t in Q2 FY ’20. On the hand, production volume jumped by 39% on a q-o-q basis as against 2.05 mn t in Q1.According to data maintained with SteelMint, the price spread between HRC-CRC widened to INR 8,000/t in Sep ’20 against INR 5,500/t in Aug ’20. This was majorly due to tight CRC supplies and strong demand recovery in auto & white goods sectors.In the Jul-Sep quarter, the company has raised its flat steel prices twice on improved domestic demand.
- Long steel output down 6% y-o-y in Q2- In Q2, the company’s long rolled product output summed up to 0.77 mn t, down by 6% y-o-y against 0.82 mn t in Q2 FY ’20. Infrastructure sector demand has picked up, however, real estate sector is still facing challenges like labour availability, due to which the long steel demand is yet to recover fully.
- Crude steel output remains stable in Q2- On a yearly basis, crude steel output remained largely unchanged at 3.85 mn t over 3.84 mn t in Q2 of previous fiscal.
However, it increased significantly by 30% compared with 2.96 mn t in Q1 FY ’21.
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