JSW Steel Ltd reported February crude steel production of 6.10 lakh tons, up by 13 percent from the 5.41 lakh tons for the same month last year.
Production of Rolled Products-Flat during the month was 4.47 lakh tons, compared to 4.42 lakh tons in February last year, an increase of one percent, while that of Rolled Products-Long nearly doubled to 1.52 lakh tons from the 0.75 lakh tons a year-ago.
The company said as the stock pile of 25 million tonnes was 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 company further stated that the quantity of iron ore sold in the E-auction during the entire month of February was only 1.17 million tonnes in all six E-auctions together, compared to the industry requirement of three million ton 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 the Central Empowered Committee recommended opening up a clean mines (Category A), the company expects that the Supreme Court will permit mining at least in Category A mines, it said.
Joint Managing Director and Group CFO Seshagiri Rao said, "The Crude steel production during February was severely impacted due to usage of inferior grades of iron ore."
JSW Steel shares are currently trading at Rs.760.50, down by 3.27 percent from the previous close.
| || |
| To receive FREE breaking news email alerts for and others in your portfolio|
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org