JSW Steel reported that its crude steel production was up 54 per cent in September to 7.33 lakh tonnes against 4.75 lakh tonnes registered last year.
Output of flat steel, which is used largely by automobile and white goods manufacturers, jumped 15 per cent to 4.52 lakh tonnes. The flat rolled production was relatively lower due to the shutdown of a hot strip mill for 21 days to enhance its capacity to 5 million tonnes (mt) a year from 3.5 mt a year, said JSW Steel in a press release on Monday. The mill restarted production ahead of schedule on October 13, it added.
Long steel production was up 47 per cent at 1.55 lt (1.05 lt). Long steel is used in infrastructure and real estate projects.
In the September quarter, crude steel output was up 25 per cent at 21.72 lt (17.38 lt). Flat steel production moved up 12 per cent to 14.51 lt (12.99 lt) and that of long steel rose 29 per cent to 4.45 lt (3.45 lt).
ICRA SEES PRICING PRESSURE
Notwithstanding a fall in raw material prices, the near-term margin for steel companies is expected to remain weak.
Jayanta Roy, Senior Vice-President, ICRA, said international steel prices are on a downward journey in the current year, reflecting the weakness in major steel consuming regions such as China, the US and Euro zone.
Consequently, a surge in cheaper imports has exerted significant pressure on domestic steel prices, which are expected to remain under check in the near term, he added.
Besides, limited iron ore availability and a weak rupee have offset the easing of international coking coal prices. This has kept the raw material prices at relatively elevated levels, despite a fall in domestic iron ore prices in September and October, ICRA said.