India: JSW Reports Decline in Finished Steel Output in Feb’20

The company has released its monthly steel output results yesterday which reported fall in crude steel and finished steel output in Feb '20 against the previous month.

Long steel output fell by 10% M-o-M in Feb'20-

--The company's long steel output stood at 0.308 MnT in Feb’20 down by 10% on a monthly premise over 0.342 MnT in Jan '20. However, the same remains unchanged on a yearly premise in Feb'20 as against 0.308 MnT in the Feb '19.

--Indian large-scale mills have raised rebar offers at the beginning of Feb'20 by INR 1,500/MT.

--As per data maintained with SteelMint, monthly average rebar prices for 12 mm were around INR 39,850/MT (ex-Mumbai) in Feb’20 as against INR 38,725/MT (ex-Mumbai) in Jan' 20. Prices mentioned above are basic, and extra GST@18% is applicable. However sluggish trades and weak purchases resulted in a decline in trade prices.

Flat steel output fell by 4% M-o-M in Feb '20-

--The company churned out 0.982 MnT of flat steel output in Feb’20, down by 4% on a monthly premise as compared with 1.025 MnT in Jan'20.On a yearly premise, the same increased by 7% in Feb’20 as against 0.92 MnT in Feb’19.

--Indian steel mills raised domestic HRC prices in Feb’20 by INR 1,500-2,000/MT amid low imports and increased cost of production.

--As per data maintained with SteelMint, on an average basis, domestic HRC (2.5-8mm, IS2062) price in the trade segment was assessed around INR 38,950/MT (Ex-Mumbai) in Feb’20 against INR 39,043/MT (Ex-Mumbai) in Jan' 20. Prices mentioned above are basic, and extra GST@18% is applicable. However lackluster buying and high inventories in hand with traders made them cautious of making fresh purchases which resulted to a reduction in trade prices.

Crude steel output down by 6% in Feb '20-

--JSW Steel's crude steel output down by 6% on a monthly premise to 1.32 MnT in Feb’20 as compared to 1.41 MnT in the previous month.

--However, the same moved up by 5% Y-o-Y in Feb’20 when compared with 1.257 MnT in Feb' 19.