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JSW Steel crude steel production in March was down three per cent at 5.92 lakh tonnes (lt) against 6.10 lt achieved in February. In fact, the company's output has seen a sharp drop from 8.05 recorded in January.
However, for the quarter ended March the company's crude steel output was up 26 per cent at 2.07 million tonne (mt). Flat steel production improved 13 per cent to 1.49 mt, while that of long products' was up 67 per cent at 0.47 mt.
The recent ban on iron ore mining in Karnataka has impacted the company's production. JSW Steel had managed to source iron ore auctioned by MSTC (Metal Scrap Trading Corporation), but it ended up with supply of inferior quality. It reduced the production capacity to avoid damage to the furnace with the use of low quality iron ore.
The Apex Court-appointed Central Empowered Committee has recommended cancellation of 49 mining licences in the State and capped the State's annual iron ore production at about 30 mt. The Committee is currently working on its recommendations to restart production at some of the mines.
MISSES ANNUAL TARGET
JSW Steel achieved crude steel production of 7.43 mt in FY'12 against its target of 8.75 mt.
Earlier this year, the company has enhanced capacity to 10 mt from seven mt at its Vijayanagar plant in Karnataka.
The company could achieve only 85 per cent of target due to ban on iron mining in Karnataka imposed by the Supreme Court, JSW said in a press release on Thursday.
Flat steel production was up nine per cent at 5.36 mt and rolled product output rose 34 per cent to 1.52 mt in the year ended March.
The company's shares were down one per cent at Rs 680 on Thursday.
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