India - JSW Long Steel Output Jumps in Q1FY20

JSW Steel, India's largest private steel producer has released its quarterly crude steel output results today.As per results company’s long steel output witness growth and flat steel output registered decline in first quarter of FY20 against previous quarter.

Company’s long Steel output increases by 6% Q-o-Q in Q1FY20- JSW long steel output increased significantly in Q1FY20 (Apr-June) to 1.05 MnT up by 6% as compared to 0.99 MnT in Q4.

As per SteelMint assessment on an average basis, trade reference prices of Rebar (12 mm) is hovering at INR 40,700/MT (ex-Mumbai) in Apr-June quarter against INR 40,700/MT (ex-Mumbai) in Jan-Mar quarter. Price mentioned above are basic and GST extra @18% is applicable.

Meanwhile on yearly basis the long steel output surged by 13% in Q1FY20 as compared to 0.93 MnT in same time frame of previous year.

Company’ crude steel production inch up by 2% Q-o-Q in FY19- JSW crude steel output inched up by 2% to 4.24 MnT in Q1FY20 as compared to 4.17 MnT in last quarter.

On yearly premise company’s crude steel output reported increase of 3% in first quarter of FY20 against 4.12 MnT similar quarter of previous year.

Company’s Flat Steel output decrease 3% Q-o-Q in Q1FY20- Flat steel production registered decreased by 3% on quarterly basis in Q1FY20 to 2.91 MnT which was 3.01 MnT in Q4FY19.

SteelMint assessment trade reference prices of domestic HRC (IS 2062, 2.5-8mm) on an average basis stood at around INR 41,400/MT (ex-Mumbai) in Apr-June which was INR 42,100/MT (ex-Mumbai) in Jan-Mar'19. Price mentioned above are basic and GST extra @18% is applicable.

Thus sluggish demand and bearish market sentiments pulled down flat steel prices in domestic market. This in turn reduces company’s crude steel output in first quarter of FY20. Meanwhile on Y-o-Y basis the same inched up by 1% in Q1FY20 as compared to 2.87 MnT in Q4FY19.