Indian steelmaker JSW Steel average capacity utilisation reached 88pc level in August as against 76pc in June, the company revealed in a press statement.
The company’s crude steel production was up by 5pc to 1.31mn mt in August compared to prior-year period and up by 6pc compared to July. Flat steel production recorded a rise of 15pc to 0.98mn mt in August compared to prior-year period and 4pc over July. However, long steel production dropped by 20pc to 0.23mn mt in August compared to prior-year period, which is 3pc less than July.
All primary steel producers including JSW Steel are ramping-up production as domestic consumption of flat steel is increasing. The company has also raised HRC prices by Rs2,500/mt and rebar by Rs1,000/mt for September delivery as per Davis Index sources.
Presently, HRC prices are around Rs40,500/mt ex-works Mumbai but still haven’t reached the pre-COVID-19 price level which was around Rs42,000/mt.
JSW Steel exported 57pc of total steel output in Q1 FY 21 which is expected to go down in Q2 due to rising domestic demand. Flats steel segment make up 75pc of the total produce, mainly consumed by the automotive industry. Indian flat steel makers were witnessing improvement in demand, largely from two-wheeler and tractor segment last month and is expected to improve further in the festive season.
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