Biznextindia: India’s second-largest steelmaker JSW Steel has reported almost 60% drop in Crude steel output to .56 million tonnes (MT) with capacity utilization falling 38% due to the enforcement of nationwide lockdown. The company had produced 1.39 MT crude steel in April 2019.
Out of the 0.56 MT crude steel, Rolled products constitute 0.34 MT and Flat products constitute .08 MT.
Despite steel production classified as an essential service and a continuous process industry that was allowed to operate during the lockdown, output crashed owing to weak consumer demand and logistic issues driven by the shutdown of customer operations in automotive, construction and other segments.
“..The Company, recognising the formidable challenges of disrupted supply chains, unparalleled drop in demand, uncertainty in seamless transportation of inbound and outbound goods through containment zones across the country, and inadequate credit flow to the industry, has undertaken multiple initiatives to reduce the fixed cost base, improve efficiencies, and find new markets and customers to remain competitive” said JSW.