India-based Jindal Steel and Power Limited’s (JSPL) steel production in Q1 increased by 20pc to 2.01mn mt compared to the prior-year period, while sales volume increased by 3pc to 1.61mn mt, according to the company’s release.
The primary steelmaker targets 8-8.5mn mt of crude steel production in the FY2022.
In Q1FY2022 (April-June), the company’s steel exports were 34pc of the total sales volume compared to 58pc in Q1FY2021. JSPL’s exports were largely impacted by logistic challenges posed by adverse weather conditions leading to port congestion.
Inventory of 150,000mt is currently stuck at ports and will be shipped as soon as the logistic problems are resolved, stated the release.
In the month of June, exports rose to 44pc of total sales. The company’s export share is likely to increase in Q2 due to slow domestic demand during the monsoon season.
As far as the domestic market is concerned, despite challenges due to the second wave of COVID-19, JSPL managed to maintain its sales levels in Q1. Demand for plates was good, but demand remained sluggish or moderate for HR coils, rebar and other structural products.
JSPL reduced rebar and structural prices by Rs1,500/mt ($20/mt) and HR coil prices by Rs1,000-1,200/mt ($13-16/mt) in the first week of July.