Jindal Steel and Power (JSPL) anticipates it will reach a record high production of 7.5mn mt of steel during the fiscal year 2020, as domestic and export demand rises.
The steelmaker is projecting export orders for steel to grow eight times in the current fiscal, ending March 2021, and has targeted a 19pc increase in steel output to accommodate the additional demand, according to news reports.
JSPL plans to export 2.5mn mt of steel in the 2020-2021 year, representing a 733pc increase from 300,000mt exported in the prior year, due to a surge in semi-finished and flat product orders from leading import consumers.
According to media reports, the company has already shipped over half of its steel export volume goals for the year, due to strong demand from several consumers, as steel has been in short supply globally. JSPL has exported 1.6mn mt of plate and semi-finished steel between April-July 2020.
The exporter also said that since August it had added more consumers from destinations where demand has been elevated for flat products and steel plate. They include customers from South Africa, Europe, Saudi Arabia, and the UAE.
Steel mills in India have more than doubled their exports, reaching a six-year, record high in volumes during the April to July period, due to demand in China.
Steel demand has also grown domestically in India; for example, shipbuilding has increased in the defense sector. Such steel requirements are likely to be met within the country as opposed to importing the material. About 80pc of JSPL’s steel sales will take place domestically following October, per reports.