Monday, March 5, 2012
JSW Crude Steel production up by 13%
Mumbai : JSW Steel Limited, one of the lowest cost steel producers, 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 company produced 6.10 lakh ton crude steel in February this year compared to 5.410 lakh ton last year; a growth of 13%.
Rolled Products (Flat) saw a growth of 1% with 4.47 lakh ton production this year compared to 4.42 lakh ton last year. Rolled Products (Long) saw a growth of 103% with 1.52 lakh ton production this year compared to 0.75 lakh ton last year.
Seshagiri Rao, Joint Managing Director and Group CFO said, “The Crude steel production during February 2012 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," he said. 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, said the company.