India’s JSW Steel is on track to complete the expansion of its steel-making capacity in Dolvi unit from 5mn mt to 10mn mt and the integrated operations are expected to start from September.
The company’s coke oven, pellet plant and Hot Strip mill (HSM) have started production in Q4. Other operations like Blast Furnace (BF) and Steel melt Shop (SMS) are ongoing and in completion stage.
Other expansion projects at Vijayanagar, Vasind and Tarapur are progressing well.
The company’s steel sales in Q1 fell by 11pc to 3.61mn mt compared to previous quarter impacted by lower domestic demand due to severe second wave of COVID-19 in southern and western region of the country.
However, Q1 sales volume increased by 29pc compared to prior year, but it cannot be compared as Indian government had imposed lockdown in Q1 2020 to control the spread of the COVID-19 pandemic.
Meanwhile, Q1 exports increased by 9pc from Q4 to offset domestic demand and ongoing recovery in the global economy.
The government continues to focus on manufacturing, with continued rollout of PLI scheme for various sectors, including specialty steel. Construction and infrastructure activities are expected to gain momentum in H2.
Key highlights:
* JSW’s crude steel production in Q1 fell to 4.10mn mt, down by 2pc from the prior year quarter due to marginal decline in capacity utilization of 91pc.
* JSW Steel Coated production volume at 0.66mn mt and sales volumes at 0.7mn mt.
* JSW Steel USA Ohio produced 150,539mt of slabs in Q1. Sales volume at 52,391mt slabs and 62,678mt HRC. The plant recommenced operation in March after upgrades.
* JSW Steel (Italy) produced 74,253mt long products in Q4. Sales volume at 59,085mt.
* US based plate and pipe mill produced 78,648mt and 5,685mt, respectively. Capacity utilization were 31pc and 4pc, respectively. Sales volume at 67,467mt of plates and 4,935mt of pipes.
Results
In Q1, higher steel prices along with support from exports demand and improved product and market mix led to the highest ever consolidated quarterly revenues of Rs289.02bn ($3.883bn) up by 6pc from the previous quarter Q4. Net profit after tax for Q1 was Rs59bn.
($1=Rs74.44)