Biznextindia : JSW steel, India’s 2nd largest steel producer by capacity, on Tuesday reported 5 per cent (MoM) drop in its April 2021 crude steel production at 1.37 million tonnes (MT) against 1.46 MT in March 2021. However, the production is significantly higher than April 2020’s output of .56 MT which was affected due to lockdown.
The shares of JSW Steel dropped 2.3 per cent at Rs.740.50 on NSE at 10.45 am Tuesday.
The average capacity utilization was slipped to 91 per cent from 96 per cent in the previous month mainly due to priority in supply of liquid oxygen for medical purposes.
“The capacity utilization was lower sequentially in April 2021 due to priority in supply of Liquid oxygen for medical purposes over augmenting steel production. During April 2021, over 20000 tonnes of liquid oxygen for medical purposes was supplied from the Steel Complexes of the Company” the company said in a statement.
During the month, the production of Rolled products (Flat) dropped marginally by 9 per cent (YoY) to.95 MT from 1 MT in March 2021. Production of Long Rolled products also dropped by 5 per cent to .33 MT as compared to .35 MT in March 2021.
The flat steel products are generally used in the white goods industry, while the long products are mostly used in the construction sector.