JSW Steel Q1 steel production up 1% at 2.86 MT

The company had produced 2.84 MT of crude steel in April-June 2012

JSW Steel today reported crude steel production of 2.86 million tonnes during the April-June quarter, a subdued growth of 1% amid slowdown in domestic industrial activities.

 

The company, headed by Sajjan Jindal, had produced 2.84 MT of crude steel in April-June 2012. The production numbers include steel production from Dolvi facility of erstwhile JSW Ispat Steel, which has now been merged into JSW.

 

During the last quarter, JSW's production of flat steel was down 2% at 2.23 MT, though it registered a 4% growth in the long steel production at 0.45 MT, the company said in a statement.

 

Flat steel is largely used by automobile and consumer durables sectors, while long steel is used in the construction and infrastructure sectors.

 

Slow down in domestic industrial activities, which has led to slump in steel demand and a planned shutdown of one of the blast furnaces at Vijayanagar and Salem plants each was the major factors in company reporting a subdued growth in steel production, a company official said.

 

The company had produced 8.51 million tonnes of crude steel in the last fiscal despite continuation of the iron ore crisis in Karnataka.

 

Shares of the company were being traded at Rs 573.50 apiece on the BSE during the afternoon trade, down 2.89% in an overall weak market.