India: JSW Crude Steel Output Down by 5% in Aug'19

JSW Steel, India's largest private steel producer has released its monthly crude steel output results today for Aug'19. The company witnessed a slump in overall steel production in Aug’19.

Company's crude steel production falls by 5% M-o-M in Aug'19- JSW's crude steel output stood at 1.253 MnT in Aug'19, moved down by 5% against 1.317 MnT in Jul’19.

Meanwhile on a yearly basis company's crude steel output tumbled by 13% in Aug'19 in comparison with 1.448 MnT in Aug'18.

Company's long steel output reduces by 8% M-o-M in Aug'19- On monthly premise JSW long steel output witnessed a decline of 8% 0.291 MnT in Aug’19 which was 0.316 MnT in preceding month.

Meanwhile, JSW registered a fall by 5% Y-o-Y basis in its long steel output in Aug'19 as against 0.305 MnT in Aug'18.

As per data maintained with SteelMint, monthly average Rebar prices for 12 mm in the secondary market was around INR 30,500/MT (ex-Mumbai) in Aug'19 against INR 31,450/MT (ex-Mumbai) in Jul'19. Prices mentioned above are basic and extra GST@18% is applicable.

Slowdown in construction activities owing to the ongoing monsoon season and liquidity crunch over delayed payments pulled down rebar prices in the domestic market.

Company's flat steel output slips by 6% M-o-M in Aug'19- JSW Steel's flat steel output slides down by 6% to 0.851 MnT in Aug'19 as compared to 0.908 MnT in the previous month.

Whereas on yearly premise the company's flat steel output plummeted by 13% in Aug'19 which was 0.981 MnT in Aug'18.

As per data maintained with SteelMint on an average basis domestic HRC (2.5-8mm, IS2062) price was assessed around INR 37,500/MT (Ex-Mumbai) in Aug’19 against INR 38,900/MT (Ex-Mumbai) in Jul’19. Prices mentioned above are basic and extra GST@18% is applicable.

Subdued demand and continual decline in steel prices in the domestic market influenced the major steelmaker to cut down the production in Aug’19. In the month of Sep’19 major Indian steel manufacturers have rolled over flat steel prices and offered rebates up to INR 750-1000/MT to improve buying in the domestic market.