India: JSW Steel Registers Fall of 4% Y-o-Y in Crude Steel Output in FY'20

The company witnessed a shortfall in its revised production guidance of 16.50 MnT by around 2.7% in FY20 owing to an unplanned scale down in activities due to COVID-19.

Company's crude steel production fell by 4% in FY '20-

-- JSW's crude steel output stood at 16.06 MnT in FY'20, down by 4% against 16.69 MnT in the previous fiscal year.

-- Meanwhile, on a quarterly premise, the company's crude steel output declined marginally by 1% to 3.97 MnT in Q4 FY'20 in comparison with 4.02 MnT in Q3FY20.

Company's long steel output reduced by 4% in FY '20-

-- In FY'20, JSW long steel output fell by 4% to 3.72 MnT which was 3.87 MnT in FY '19.

-- However, the company registered a growth of 7% on a quarterly premise in its long steel output to 0.95 MnT in Q4FY20 as against 0.89 MnT in Q3 FY '20.

-- As per data maintained with SteelMint, monthly average Rebar prices for 12 mm in the secondary market was around INR 37,775/MT (ex-Mumbai) in FY'20 against INR 42,400/MT (ex-Mumbai) in FY'19. Prices mentioned above are basic and extra GST@18% is applicable. Dull domestic demand, delayed payment cycles kept domestic prices under pressure.

Company's flat steel output slips by 3% in FY '20-

-- JSW Steel's flat steel output down by 3% to 11.35 MnT in FY'20 as compared to 11.74 MnT in the previous fiscal.

-- Whereas on a Q-o-Q basis, the company's flat steel output remained stable in Q4 to 2.87 MnT, which was 2.86 MnT in Q3.

-- As per data maintained with SteelMint on an average basis domestic HRC (2.5-8mm, IS2062) price was assessed around INR 38,100/MT (Ex-Mumbai) in FY'20 against INR 44,600/MT (Ex-Mumbai) in FY'19. Prices mentioned above are basic and extra GST@18% is applicable.

-- Subdued demand due to the monsoon period and low buying in the auto sector led to falling steel prices in the domestic market.

JSW Steel Production Figures in FY20

Quantity in MnT
Source: Company Press Release, SteelMint Research