After an unprecedented fall in domestic steel production in April due to the covid-led lockdown, large Indian steelmakers increased production in May. Preliminary numbers from two large firms, JSW Steel Ltd and Jindal Steel and Power Ltd (JSPL), and industry estimates for others, suggest that average capacity utilization improved to 75%. However, steel companies are exporting the bulk of products, while selling at a discount in India to boost sales, and profit margins are under pressure.
JSW Steel ramped up its average capacity utilization to 83% in May, up from 38% in April. Crude steel production was at 1.248 million tonnes, up 122% over April, but lower than the 1.453 million tonnes in May 2019. The bulk was flat steel products, accounting for 905,000 tonnes.
