JSW Steel Crude Steel Production Increased by 13% in February 2012

OREANDA-NEWS. March 05, 2012. JSW Steel Limited reported monthly Crude Steel production of 6.10 lac tons in February'2012, showing a growth of 13% over corresponding month of previous year. The cumulative crude steel production for 11 months of the financial year was 6.77 million tones with a growth of 15% over previous period.

The break-up of production is as below:

Mr.Seshagiri Rao, Joint Managing Director & Group CFO said, "The Crude steel production during February'12 was severely impacted due to usage of inferior grades of Iron ore".

As the stock pile of 25 million tonnes is getting exhausted, the quality of iron ore being offered in E-auction is deteriorating substantially. Further certain iron ore in E-auctions 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 quantity of iron ore sold in the E-auction during entire month of February'2012 was only 1.17 million tonnes in all 6 E-auctions together as against the industry requirement of 3 million tons per month. Even after paying higher prices in E-auctions, the availability of quality iron ore is a challenge, threatening the continuation of steel production efficiently. Steel industry in Karnataka region, therefore, is not only facing shortage of iron ore but poor quality of iron ore is impacting the equipment, productivity and efficiency.

Since Central Empowered Committee (CEC) recommended opening up of clean mines (Category A), the Company expects that the Honourable Supreme Court will permit mining atleast in Category A mines.

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, port facilities, Aluminum, Cement and Information Technology. JSW Steel Limited is engaged in manufacture of flat and long products viz. H R Coils, C R Coils, Galvanised products, Galvalume products, auto grade / white goods grade CRCA Steel, Bars and Rods. Incorporated in 1994, it has grown to USD  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.