JSW Steel production declines three percent at 592,000 tonnes in March 2012

April 27, 2012 - PRLog -- One of the major steel players in India, JSW Steel's crude steel production in March this year dipped by three percent at 592,000 tonnes as against 610,000 tonnes achieved in the previous month.

For the quarter ended March 2012, JSW's crude steel output showed an upward tick of 26 percent at 2.07 million tonne, while flat steel production also showed marginal improvement of 13 percent to 1.49 million tonne and that of long products, it showed an increase of 67 percent at 0.47 million tonne.

Negative impact

The recent ban on iron ore mining in the south Indian state of Karnataka has had a telling effect on the company's production. JSW did manage to procure iron ore auctioned by Metal Scrap Trading Corporation, but it ended up with supply of poor quality. It further reduced the production capacity, apparently to avoid damage to the furnace with the use of low quality iron ore.

It may be recalled that the Supreme Court appointed Central Empowered Committee has recommended the cancellation of 49 mining liceces in Karnataka and further capped its annual iron ore production at around 300 million tonne. Furthermore, the Committee is right now working on its recommendations to resume production at some of the mines in the State.

Annual target

Meanwhile, the company has achieved crude steel production of 7.43 million tronne in 2012 versus its target of 8.75 million tonne. It may also be recalled that JSW Steel had underwent capacity expansion early thi syear to ten million tonne from the previous seven million tonne at its Vijayanagar plant in Karnataka. The steel maker might as well achive only 85 percent of target, apparently due to the existing ban on iron mining in the State. However, flat steel production surged by nine percent at 5.36 million tonne and rolled product output also increased 34 percent to 1.52 million tonne in the year ended March 31, 2012.  For all automotive and related industry news from India, visit automotivehorizon.sulekha.com.