India: JSW Steel eyes higher export allocation in Jun'21 from Vijayanagar

JSW Steel is looking to increase its total sales target from the flagship Vijayanagar works by almost 5% to around 8.75 lakh tonnes for Jun'21, sources informed SteelMint. Importantly, of this total volume, the share of exports has been increased by nearly 7% to 3.30 lakh tonnes from around 3.10 lakh tonnes in May'21. On the other hand, June allocation for domestic sales has been increased a marginal 3% to around 5.45 lakh tonnes, it is learnt.

It seems, JSW Steel, as with most mills now, is looking for a greater exports play since domestic demand is dull, thanks to the Covid-induced lockdowns and onset of the monsoon. A market source said, mills are currently looking to divert more than the usual 30-35% of their production towards exports.

May'21 sales

Total actual sales from Vijayanagar in May'21 were at around 8.35 lakh tonnes, a m-o-m drop of 3.5% against 8.65 lakh tonnes in April.

Within its total sales, exports comprised almost 3.10 lakh tonnes in May'21 against around 3 lakh tonnes in April, up more than 4% m-o-m. Dull domestic demand had driven most mills to the exports market in May as well.

In fact, due to subdued home consumption, domestic sales dropped more than 7% m-o-m in May to 5.3 lakh tonnes against April's nearly 5.7 lakh tonnes, it is learnt.

Total wire rod (WR) sales in May'21 were at around 92,000 tonnes against 83,300 tonnes in April. May WR exports were at 55,400 tonnes against 48,000 tonnes in April. Domestic WR sales in May were at 36,500 tonnes against 35,300 tonnes in April.

Total TMT sales for the month under review were at 76,500 tonnes against 1.09 lakh tonnes in April. May TMT exports comprised around 24,000 tonnes compared to 29,400 tonnes in April. Domestic TMT sales were at 52,000 against almost 80,000 tonnes in April.

Production

Hot metal production from the flagship plant rose a marginal 2% in May'21 to around 0.96 million tonne (mn t) against 0.94 mn t seen in Apr'21.

Sources said that nearly 80,000 tonnes of production was lost May'21 due to shortage or diversion of oxygen to hospitals for fighting the Covid second wave.

Wire rod production at Vijayanagar works in May'21 was at around 96,000 tonnes against 82,000 tonnes in April, a rise of around 17% m-o-m.

TMT output m-o-m in May dropped 27% to 78,500 tonnes against 1.08 lakh tonnes seen in April.

~Madhumita Mookerji