India’s 3rd largest alloy producer, JSW Steel tussled with quarterly loss owing to low-priced import from China, Japan and Korea coupled with subdued demand in domestic market. The company’s net loss was INR 1.7 bn (USD 17 million) in Q1 FY16 against gain of INR 6.56 bn a year ago. Net sales fell 13% to INR 113.8 bn.
Mr Sajjan Jindal, chairman of JSW Steel, stated, “The global steel industry is reeling under the impact of Chinese exports. Steel companies in Asia’s 3rd largest economy are facing challenges over unexpected surge in imports majorly from China, Russia and Japan coupled with limited demand in domestic market.”
Chinese steel export has surged to an extraordinary levels as demand in the world’s largest producer has slowed down, as per media source. Overseas sales from China have increased to 52.4 MnT in Q1; a level on par with Japanese total production.
During the quarter, the company reported crude steel production of 3.40 MnT, while saleable steel volume stood at 3.11 MnT.
JSW’s Crude Steel Production in Q1 FY16
| Particulars | Q1 FY16 | Q1 FY15 | % Y-o-Y Growth |
| Crude Steel Production | 3.40 | 3.10 | 10% |
| Sales: | |||
| Rolled: Flat | 2.40 | 2.32 | 4% |
| Rolled: Long | 0.62 | 0.47 | 32% |
| Semis | 0.08 | 0.08 | – 7% |
| Total Saleable Steel | 3.11 | 2.88 | 8% |
Indian HRC prices have been declined in the range of INR 1,500-2,500/MT since April amidst sluggish demand from flat steel major markets.
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