India-based JSW Steel’s crude steel production rose to 1.382mn mt in July, up by 3pc from the prior year. Average capacity utilization rose to 92pc in July, up from 91pc in Q1 FY2022.
Flat steel output slipped by 1pc in July amid the planned maintenance of one converter at Vijaynagar works. Flat steel production was 934,000mt compared to 940,000mt in July 2020. Long steel production increased by 28pc to 306,000mt in July, up from 240,000mt a year ago.
JSW expects economic activities to gain momentum in Q2 FY2022 as restrictions ease after the second wave of COVID-19 in India. Additionally, a normal monsoon could strengthen rural incomes, according to the company’s Q1 presentation.
The government’s focus on infrastructure funding could boost construction and infrastructure activities in H2 FY2022, which bodes well for the company’s long steel portfolio. The uptick in auto sales, signals growth in the sector and could support demand for flat steel.
Amid a slump in domestic sales due to the second wave, JSW’s export volumes improved in Q1 amid robust overseas demand. Higher steel prices also improved the company’s sales realization. In Q1 FY2021, consolidated revenue grew to Rs289.02bn ($3.88bn), up by 4pc from Q4, supported by higher export demand and improved product mix. Export rose to 35pc of total sales in Q1, up from 25pc in Q1.