JSW Steel crude steel production at 5.63 lakh tonnes

11 May 2020

JSW Steel produced 5.63 lakh tonnes of crude steel in April 2020, a 60% decline as against 13.93 lakh tonnes in the same month last year as the steelmaker was operating at low capacities due to the nationwide lockdown.

The average capacity utilisation was clocked at 38% for April 2020, the company said in a statement.

“To commence and scale up production in a healthy and safe state of operating conditions, the Company secured requisite approvals and has accordingly commenced operations and is gradually ramping up capacity since then,” JSW said in a statement.

Total flat-rolled production declined 64% and was recorded at 3.44 lakh tonnes as against 9.53 lakh tonnes in April 2019. Rolled long production too fell 73% to 0.89 lakh tonnes.

Recognising the formidable challenges of disrupted supply chains, unparalleled drop in demand, and uncertainty in seamless transportation of inbound and outbound goods through containment zones across the country, and inadequate credit flow to the industry, JSW has undertaken initiatives to reduce the fixed cost base, improve efficiencies, and find new markets and customers to remain competitive, the company said.

The Company achieved 97.3% of revised production guidance of 16.50 million tonnes, degrowth of 4% YoY for FY 2019-20. It could have almost achieved the revised guidance if there were no such exceptional events Viz. COVID19, it said in a statement.