JSW Steel’s crude steel production falls due to ongoing COVID-19 pandemic
JSW SteelNSE -9.11 % produced 5.63 lakh tonnes of crude steel in April 2020, a 60% decline as against 13.93 lakh tonnes in the same month last year as the steel maker was operating at low capacities due to the nationwide lockdown.
The average capacity utilisation was clocked at 38% for April 2020, the company said in a statement.
“To commence and scale up production in a healthy and safe state of operating conditions, the Company secured requisite approvals and has accordingly commenced operations and is gradually ramping up capacity since then,” JSW said in a statement.
The company on March 25 th announced in a BSE Filing on scaling down and suspending production to support the ongoing Covid-19 pandemic.
Total flat rolled production declined 64% and was recorded at 3.44 lakh tonnes as against 9.53 lakh tonnes in April 2019. Rolled long production too fell 73% to 0.89 lakh tonnes.
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, JSW has undertaken initiatives to reduce the fixed cost base, improve efficiencies, and find new markets and customers to remain competitive, the company said.
“A right mix of fiscal and monetary stimulus measures and various policy initiatives undertaken or to be announced by the Government and Reserve Bank of India…will drive a gradual recovery in economic conditions.”
The Company achieved 97.3% of revised production guidance of 16.50 million tonnes, a degrowth of 4% yoy for FY 2019-20. It could have almost achieved the revised guidance if there was no such exceptional events Viz. COVID19, it said in a statement.
“The additional two weeks lockdown 3.0, till 17th May’20 declared by the Central Government with further relaxations to commence some more additional economic activities is a step in the right direction in reviving the sentiment and in gradually restoring the confidence to rejuvenate the economy”, JSW Steel said in a statement on Monday.