JSW Steel reported a 7% year-on-year increase in crude Steel production for the month of October 2020 at 13.38 lakh compared to 12.54 lakh tonnes in the same month last year. Average capacity usage rose to 89% during the month of October 2020, the company said.
The company reported a crude steel output of 12.88 lakh tonnes for the month of September 2020.
Production of flat-rolled goods increased by 6% on a month-on-month basis to 9.76 lakh tonnes in October 2020 and stayed flat on a year-on-year basis. Production of long-rolled products increased by 2% month-on-month and by 16% year-on-year to 3.01 lakh tonnes in October 2020, suggesting an improvement in the building and infrastructure segments.
JSW Steel reported earlier during the interaction that their production for the quarter ended September was impacted by a lack of supply of iron ore. Many steel industry bodies have petitioned the commerce ministry to address the issue.
Seshagiri Rao, joint managing director, JSW Steel said, “ Production was flat on a year-on-year basis, production volumes could not be increased due to shortage of iron ore. Otherwise, the production could have been much better and sales, even better.”
Despite increased utilization levels and good demand, the company’s production levels were held back to a shortage of iron ore in the market, Rao said.
However, October has seen a revival in production for the steelmakers. State-owned steel manufacturer, Steel Authority of India, Sail has reported a SAIL’s crude steel production grew 14% year-on-year to 1.44 million tonnes during October.
JSW Steel reported a 37% fall in net profit at Rs 1,595 crore for the second fiscal quarter from a year earlier, but the performance was significantly better compared with three months earlier as its recovery from the impact of Covid-19 and lockdown gained momentum.