Indian steelmaker JSW’s crude production increased by 10pc to 1.36mn mt in May compared to the prior-year period, while long steel production rose by 55pc to 0.3mn mt, according to the company’s. Flat steel production increased by 10pc to 0.99mn mt in the same period.
The increase in long steel output this year might seem high, but that is because the output in the corresponding period in 2020 was low due to the nationwide lockdown in India to control the spread of COVID-19. In that period, major steel mills focused on steel export as domestic demand was low, so they were producing more flat products than long products.
JSW Steel’s average capacity utilization was at 91pc level in May, with the company increasing the supply of liquid oxygen for medical purpose. In May, liquid oxygen supplies from JSW’s steel complexes across India rose to 30,000mt as against 20,000mt in April.
Hike in steel prices
JSW Steel raised HRC prices by Rs3,150/mt ($43/mt) and CRC by Rs4,900/mt ($67/mt) in early-May. However, the company had offered a discount of Rs500-1,000/mt ($7-14/mt) on rebar and wire rod.
Rebar is priced at around Rs53,000/mt ($726/mt) and HRC at Rs70,000/mt ($959/mt) by primary players in Mumbai.