Crude steel production of JSW Steel reaches 2.96 million tonnes in Q1FY21

JSW Steel Ltd, one of the leading integrated steel companies in India, announced its crude steel production on Friday.

The company has achieved 2.96 million tonnes in Q1FY21, which dropped by approximately 25 per cent QoQ as compared to 3.97 million tonnes in Q4FY20. The production of flat-rolled steel reached 2.05 million tonnes in Q1FY21, which dropped by approximately 29 per cent and long-rolled steel achieved 0.45 million tonnes in Q1FY21, which dropped by approximately 53 per cent on QoQ basis.  

The average utilisation capacity dropped to 76 per cent in the month of June due to a drop in production at Vijaynagar Works as certain employees were tested positive for COVID-19. This led to the enforcement of restrictions by the local administration on the entry and exit of employees at the plant location. Although the majority of the employees have recovered, the plant is now being operated at reduced employee strength.

The company has been declared as the 'preferred bidder’ in four iron ore mines in the state of Odisha namely Nuagaon, Narayanposhi, Jajang and Ganua, which started operations recently i.e. on July 1, 2020. The company intends to meet its requirements from these mines in order to reduce its dependency on merchant miners.

On Friday, the stock of JSW Steel Ltd closed at Rs 190.95 with a decline of 1.83 per cent or Rs 3.55 on BSE.