JSW Reports 13% Increase in Crude Steel Production for February
03/07/2012 - JSW Steel Limited reported monthly Crude Steel production of 610,000 tonnes in February 2012, representing a growth of 13% over corresponding month of previous year. YTD crude steel production is 15% higher than in the comparable year-ago period.
JSW Steel Limited reported monthly Crude Steel production of 610,000 tonnes in February 2012, representing a growth of 13% over corresponding month of previous year. For the year to date, the company has produced 6.77 million tones, representing a growth 15% over the comparable year-ago period.
“The Crude steel production during February ’12 was severely impacted due to usage of inferior grades of Iron ore,” noted Seshagiri Rao, Joint Managing Director & Group CFO.
The company also reported the production of 447,000 tonnes of flat rolled products in February, representing 1% growth over the production of 442,000 tonnes in February 2011. The company also produced 152,000 tonnes of long rolled products, representing 103% growth compared to the production of 75,000 tonnes in February 2011.
The company noted that the quality of iron ore being offered in E-auction is deteriorating as the stockpile of 25 million tonnes is being exhausted. Certain iron ore in E-auctions have contained high alumina, silica, manganese and low Fe, which led to poor sinter quality, high slag formation and low productivity in the Blast Furnaces.
The company also reports that the quantity of iron ore sold in the E-auction during the entire month of February 2012 was only 1.17 million tonnes in all 6 E-auctions together, well below the industry requirement of 3 million tonnes per month. Even after paying higher prices in E-auctions, the availability of quality iron ore is a challenge, threatening the continuation of efficient steel production. According to the company, not only is the steel industry in the Karnataka region facing the shortage of iron ore, but poor quality of iron ore is impacting the equipment, productivity and efficiency.
JSW Steel Ltd., belonging to JSW group, part of the O P Jindal Group, is one of the lowest-cost steel producers in the world. The group has diversified interest in mining, carbon steel, power, industrial gases, and port facilities as well as aluminum, cement and information technology. JSW Steel Limited is engaged in the manufacture of flat and long products including hot and cold rolled coils, Galvanized and Galvalume products, and auto grade / white goods grade cold rolled/continuously annealed steel as well as bars and rods. Incorporated in 1994, it has grown to US $ 9 billion in little over fifteen years. JSW Steel Limited is one of the largest producers and exporters of coated flat products in the country with presence in over 100 countries across five continents.
