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

India’s JSW Steel produced 4.19mn mt crude steel in Q4 FY2021, up by 6pc from a year ago at an average capacity utilisation rate of 93pc in the quarter, according to the company’s performance update. In March, the company’s utilisation rose to 96pc.


Production in Q4 rose by 2pc from 4.08mn mt in Q3, when the utilisation rate was 91pc. In the quarter, flat-rolled output rose by 4pc to 2.99mn mt, while long rolled products increased by 11pc to 1.05mn mt. 


JSW steel’s production in Q4 and FY2021
Production (mn mt)Q4FY2021Q4FY2021ChangeFY2021FY2020Change
Crude Steel4.193.976%15.0816.06-6%
  Rolled – Flat2.992.874%10.8711.35-4%
  Rolled – Long1.050.9511%3.213.72-14%


For the full year FY2021, JSW Steel posted a crude steel production of 15.08mn mt, lower than the revised production guidance of 16mn announced in May 2020 and 6pc below FY2020’s output of 16.06mn mt. The COVID-19-related lockdowns in Q1 decreased the company’s steel output during the year. JSW’s average capacity utilization in Q1 was 66pc. 


Uptrend in steel prices

Robust demand for flat steel, especially demand for HRC from the auto sector, is pushing up steel prices in India. Global cues, including higher steel prices in the international market, production cuts in China, higher iron ore and other raw material price and steep increases in ocean freight rates are supporting higher steel prices in the domestic market.


In April, JSW Steel raised HRC prices by Rs4,000/mt, while rebar and wire rod prices were hiked by Rs3,000/mt. In Mumbai, HRC prices are at Rs57,500-58,000/mt ex-works, while rebar is priced at Rs52,500-53,000/mt ex-works, excluding GST. Prices differ by plant locations. 

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