Oct. 14, 2020 - In an early sign of turnaround in economy, India's largest steel producers, JSW Steel and Tata Steel, have reported sharp jump in production and sales in the September quarter.
Sajjan Jindal-headed JSW Steel’s production was up 30 per cent at 3.85 million tonne (mt) in September quarter against 2.96 mt logged in the June quarter. Its output was marginally higher compared to 3.84 mt registered in September quarter last year.
JSW Steel flat product output was up 38 per cent at 2.84 mt, against 2.05 mt logged in the June quarter while that of long products increased 69 per cent to 0.77 mt (0.45 mt).
With this, JSW Steel said it has achieved average capacity utilisation of 86 per cent in the September quarter in line with pre-Covid level of 85 per cent of last year’s Q2. This is a quantum jump from capacity utilisation of 66 per cent for Q1 FY21, which was impacted by the Covid pandemic, it said.
The company reported that its domestic production was up 54 per cent at 4.59 mt against 2.99 mt recorded in June quarter and two per cent compared to 4.50 registered in same period last year.
It recorded highest-ever quarterly sales of 5.05 mt which jumped 72 per compared to 2.93 mt in June quarter and 4.13 mt recorded in September quarter last year.
Tata Steel ramped up its steel-making and downstream operations in India back to pre-Covid level, with all major sites operating at near full capacity utilisation, it said.
The company reduced exports to 24 per cent of overall sales and sharply ramped up domestic deliveries to 3.86 mt which translated to an increase of 164 per cent QoQ and 10 per cent YoY.
In Europe, macroeconomic and steel demand recovery is more gradual. Tata Steel Europe’s output and sales were down by 12 per cent and 14 per cent at 2.15 mt and 1.98 mt, against 2.45 mt and 2.29 mt logged in September quarter last year.