JSW Steel’s Output Beats Peers’ In Q3
JSW Steel Ltd. produced more than peers in the third quarter on higher capacity utilisation.
JSW Steel’s output, including that of a jointly controlled entity JSW Ispat Special Products Ltd., stood at 5.19 million tonnes in the three months ended December, according to its exchange filing. That compares with Tata Steel Ltd.’s 4.8 MT and Jindal Steel & Power Ltd.’s 1.96 MT. Steel Authority of India Ltd. hasn’t released its production figures yet.
The capacity utilisation of JSW Steel’s existing operations at standalone level, the filing said, was at 94% in Q3FY22. That even as Bhushan Power & Steel Ltd.’s production fell mainly due to shutdown of a continuous strip plant for 10 days to upgrade automation.
The steel mill’s Dolvi Phase 2 plant expansion also helped.
All steelmakers, barring JSW Steel, reported a decline in sales in the quarter ended December.
Tata Steel’s growth in domestic deliveries was driven by broad-based growth in automotive and special products; branded products and retail; and industrial products, but lower exports weighed on sales volumes, it said in a statement.
According to Ritesh Shah, analyst at Investec Securities, Indian steel sales volumes are a tad lower and indicative of an inventory build-up for the quarter. This, he said, could be potentially on the back of a weak activity in November (rains, labour issues), logistic issues around rake availability and consequently dispatches being impacted. “If not for Covid dampening demand, one can expect inventories to be cleared by March 2022.”