Producers of metals are expected to report a rebound in earnings in 2021-22 in sync with the surge in global steel capacity utilisation which is projected to hit a decade high of 81-82 per cent with iron ore supplies likely to remain in deficit in 2021-22.

Jindal Steel and Power was among the first to report a sharp rise in steel demand in its monthly business update. The company said it had achieved its highest ever production and sales in the month of December.

JSPL said it had a record 30 per cent jump in its standalone production and 25 per cent growth in sales during December 2020. The company’s total production from its plants in India was at 7.27 lakh tonnes (LT) in December, up from 5.59 LT during the same month in 2019, JSPL said in a statement.
JSPL has raised prices by Rs 5,200 per tonne in the third quarter.

“We are proud of our dedicated workforce who achieved such an extraordinary increase in the production with existing capacity by way of optimising various operating parameters without any capex. We will achieve even greater heights in times to come,” JSPL managing director V.R. Sharma said.

During the month under review, standalone sales were at 7.11 LT against 5.67 LT in December 2019. On a month-on-month basis, the production at 7.27 LT was over 18 per cent higher from 6.14 LT in November 2020. At 7.11 LT the sales in December 2020 were 26 per cent up compared with 5.65 LT in November 2020.

For October-December 2020, the company has posted 19.26 LT standalone production, up 20 per cent from 16.10 LT in the same period in 2019. During the period under review, the sales were at 18.76 LT, registering a rise of 12 compared to 16.71 LT in October-December 2019.

In the statement, JSPL said the company recorded its highest ever production and sales numbers in December 2020, as well as in the October-December period.