JSW Increases Product Range To Replace Chinese Imports
JSW Steel saw demand for value-added products and special steel rise in the October-December quarter as industrial component manufacturers seek to replace their dependence on Chinese imports will locally manufactured alternatives. Demand for specialized product grades from auto component manufacturers, bearings and forging industry-led JSW to approve 18 new product and grade categories in the third quarter. The new grades approved include a special forging alloy steel grade and ultra-low carbon and bake-hardened steel for auto OEMs (original equipment manufacturers), electrical steel with superior core loss grades for industrial motors and transformers, and new bearing grades and corrosion-resistant high strength hot-rolled steel for general engineering use. JSW Steel, like most large primary steel producers in the country, was table to dramatically turn around its steel production and financial performance by the December quarter after covid-19 disrupted operations through most of the first quarter. The company made a turnaround to 91% capacity utilization in the third quarter and its highest ever reported operating profits, aided by recovery in end-user businesses and high global steel prices limiting imports. Net profit stood at ?2669 crore, rising 93% year-on-year from the ?187 crore while operating EBITDA (earnings before interest, tax, depreciation and amortization) stood at record levels of ?5,946 crore. JSW used the quarter to increase its sales of special and branded steels, where margins can be as much as 30% higher than hot-rolled coil. Its automotive steel sales increased 57% year-on-year in the third quarter against the auto industry’s own manufacturing which increased 16% over the same period. Sales of value added and special products moved up 12% and accounted for 57% of overall sales, mainly driven by robust automotive sales and increased offtake from industrial and engineering, solar and the consumer durables segment. JSW also reported its highest ever quarterly retail volume of 1.18 million tonnes (mt), 14% year-on-year. With such robust local demand, the company’s exports shrank from 24% in Q3FY20 to 12% in Q3FY21.
Tags : ALLIED Steel JSW Product Range Chinese Imports