JSW Steel reports 3% rise in November crude steel production, utilisations flat due to iron ore shortage

JSW Steel reports 3% rise in November crude steel production, utilisations flat due to iron ore shortage

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Mumbai: JSW Steel’s crude steel production for the month of November, 2020 rose by 3% was at 13.32 lakh tonnes.
“The average capacity utilisation was 89% during the month of November 2020. ” the company said in a statement on Tuesday.

The company’s flat products segment grew by 6% year-on-year to 9.61 lakh tonnes and the long products degrew by 1% to 2.95 lakh tonnes during November 2020, indicating a better demand in automotive and white goods segment as against construction segment.

JSW Steel has recorded a 7% year-on-year rise in crude Steel production for the month of October, 2020 at 13.38 lakh tonnes.

The utilisation levels in the month of October was also around 89% keeping November utilisation levels flat.

“The shortage of Iron ore remained a constraint in November 2020 to achieve higher capacity utilisation,’” the company said in a statement.

Steel industry is witnessing an acute iron ore shortage, one of the significant raw materials for making steel. Amid a sharp increase in iron ore prices, along with an improved domestic demand, Indian steel mills have hiked steel prices by around Rs 2500 – 2700 per tonne on 1st of December.

Newly acquired iron ore miners are yet to ramp up production leading to a supply shortage of iron ore, say analysts.

“Of the iron ore mines that were auctioned in Odisha, only some of them have been operationalised so far. Several bidders quoted unrealistic prices in the auction, and that may be one of the reasons behind this problem,” said Jayanta Roy, Icra’s senior vice president tracking the steel sector.

Credit: Stocks-Markets-Economic Times

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