JSW Steel ramps up output in May

JSW Steel has more than doubled production in May after shutting down output in March-end and restarting it mid-April due to Covid-19 pandemic.

The company’s crude steel production jumped 122 per cent in May to 12.48 lakh tonnes, against 5.63 lakh tonnes logged in April.

Flat steel output was up 163 per cent to 9.06 lakh tonnes against 3.44 lakh tonnes recorded in April, while production of long products improved to two lakh tonnes (0.99 lakh tonnes).

However, production is still lagging compared to last year. The output in May was down 14 per cent compared to 14.53 lakh tonnes logged in May 2019.

Flat and long steel production are down 11 per cent and 44 per cent compared to that registered in May 2019.

With domestic demand still lagging, steel companies are relying on export markets to sell their produce.

In a recent interview with BusinessLine , Seshagiri Rao, Joint Managing Director, JSW Steel, said countries such as China, Korea, Russia and Japan which rely on exports are not able to meet demand now but steel importing countries are still buying.

Most neighbouring countries such Bangladesh, Nepal, Myanmar, Malaysia, Vietnam, Dubai and West Asian countries are in the market driving demand. The export opportunity is not going to change in a hurry, he said.

Though realisations are lower in export markets, rupee depreciated by 9 per cent last year and by 6 per cent in the last quarter, partially making up for the 15 per cent fall in steel prices. Further, he said, the lower production cost and fall in raw material prices helped steel companies make up for the lower realisation.

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