Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

India’s JSW Steel targets 22.94mn mt crude steel production and 21.63mn mt sales volumes in FY2022 from its Indian and overseas operations. JSW’s standalone production target is 18.5mn mt crude steel and 17.4mn mt sales.


Steel demand rebound both in India and in the international markets amid constrained supplies that led to a continuous rise of prices in the last one year. A spike in COVID-19 cases in the second wave of infections has been dampening recovery. However, lockdowns this year are more localised with fewer restrictions compared to a national lockdown imposed in 2020. JSW expects the government’s pro-growth policies announced in the Union Budget for FY22 should help the economy to recover at a faster pace compared to that witnessed before the start of the second wave.

JSW’s crude steel production guidance for FY22
(Unit mn mt)ProductionSales
Existing Operations1716
Dolvi Phase 2 Expansion1.51.4
JSW Steel Standalone18.517.4
JSW Steel USA Ohio11
Joint Control  
Bhushan Power & Steel2.82.6
JSW Ispat Special Products0.640.63
Combined volumes22.9421.63


Key highlights

* JSW’s crude steel production in Q4 rose to 4.19mn mt, up by 6pc from the prior year quarter due to higher capacity utilization of 93pc. Steel sales rose to 4.06mn mt, up by 10pc.


* JSW Steel Coated production volume at 0.51mn mt and sales volumes at 0.62mn mt, while Asian Colour Coated production volume at 0.14mn mt and sales volume at 0.16mn mt in Q4.


* JSW Steel USA Ohio produced 1,828mt of HRC and 21,170mt of slabs in Q4. Sales volume were 9,880mt of HRC and 3,402mt of slabs. The plant was shut down for part of the year for upgradation and has restarted in mid-March and is ramping up well.


* JSW Steel (Italy) produced 89,163mt of long products in Q4. Sales volume were 1,16,988mt. 


* US based plate and pipe mill produced 18,309mt of plates and sales volume were 16,485mt plates and 203mt of pipes.


* In FY2021, the company achieved 15.08mn mt crude steel production, down by 6pc from the prior year. Average capacity utilisation levels hit 96pc in March 2021. Sales volume at 14.88mn mt, down by 1pc from a year ago.


* The company exported 4.23mn mt of steel in FY2021, an increase of 36pc from the prior year and exports contribute 28pc to total sales compared to 21pc in the prior year. 



In Q4, strong domestic demand along with support from exports and improved steel prices led to the highest ever consolidated quarterly revenues of Rs243.98bn ($3.34bn) up by 60pc from the prior year Q4. Net profit after tax for Q4 is Rs40.18mn.


For the full year, JSW’s consolidated revenue from operations rose to Rs798.39bn, up by 9pc from a year ago. The company reported the highest ever annual net profit after tax of Rs78.730bn, up by 101pc from a year ago. 


New projects

* JSW Steel will expand its steel-making capacity by 5mn mt at Vijayanagar from the existing 12mn mt capacity. It is India’s largest single-location steel plant, and this brownfield expansion will be completed by FY2024. 


* The company has 4 iron ore mine leases in Odisha that were acquired in auctions in FY2020, and it has successfully operationalized and ramped up all these mines in FY2021.


* The company will set up a 0.12mn mt colour coated downstream steel facility in Jammu & Kashmir to cater to growing demand in the region.



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