Mumbai : Jindal Steel and Power on Thursday reported a marginal growth in steel production to 6.57 lakh tonne in the month of February this year.
“JSP’s steel production stood at 6.57 lakh tonnes in February 2022 which was modestly higher than previous year by over one per cent Y-o-Y,” the company said in a statement.
However, it registered an eight per cent increase in steel sales volumes to 5.90 lakh tonnes in February 2022 as compared to 5.47 lakh tonnes in same period last year.
“Sales would have been higher if not for limited rake availability in the eastern part of the country. Railway rake availability issue is not yet fully resolved, hampering company’s sales efforts,” it added.
Exports contributed 24 per cent to the sales volumes.
Commenting on the monthly performance, JSP Managing Director VR Sharma said, “The world has started feeling the heat of the unfortunate Russia- Ukraine conflict. Brent and energy prices are skyrocketing due to the full scale war in Eastern Europe. Input costs for steam coal, coking coal and ferro alloys are witnessing substantial rise which has resulted in higher steel prices.”
He further said that while we hope and pray for faster resolution of the conflict, it will take at least six months for markets to stabilize post war.
“Higher input costs should therefore result in continued rise in steel prices as the industry grapples with containing cost pressures,” Sharma added.