JSW Steel has already reported a sharp fall in crude steel production on the back of weak logistics and tepid demand. JSW Steel reported crude steel production of 2.96 MT in the Jun-20 quarter as compared to crude steel production of 4.24 MT in the corresponding June quarter of the previous fiscal year. Its average capacity utilisation dropped to 76%

The weakness was across product segments. Production of flat-rolled products totalled 2.05 MT in Jun-20 quarter compared to 2.87 MT last year. Production of long rolled or LR product was at 0.MT in the Jun-20 quarter as compared to 0.95 MT in the corresponding period last year. Clearly, tepid demand had led the output lower.

JSW Steel expects to meet a majority of its requirements of iron ore from the mines allocated to them under the government allocation to reduce its dependency in sourcing the ore from merchant miners in Odisha