Indian steelmaker JSW Steel’s crude steel production dipped marginally by 1pc to 1.3mn mt in February compared to prior-year period. Flat steel production decreased by 6pc to 0.92mn mt in the same period. However, long steel production recorded a jump of 10pc to 0.34mn mt, the company announced in a statement.
According to sources, JSW Steel’s long steel production surged after it started producing wire rod from the new mill at Vijayanagar in Karnataka which has a production capacity of 1.2mn mt.
Earlier, the company used to produce around 40,000-45,000mt of wire rod in a month. This has now doubled to around 80,000mt from both, it’s new as well as existing mills.
The company sells wire rod in domestic market, in addition to exporting to South East Asia.
JSW Steel reduced domestic wire rod prices by Rs2,000/mt ($28/mt) in early March due to moderate demand, as per market sources.
Wire rod is priced at around Rs49,000-49,500/mt ($674-680/mt) of MS grade material in South India. Overseas markets like Singapore, Malaysia and Nepal provide higher realisation to the company.
JSW Steel’s average capacity utilisation was at 93pc level in February compared to 96pc in January.