JSPL reports 29% rise in July standalone steel sales, says demand up

Jindal Steel & Power (JSPL) has reported a 29 per cent increase in standalone steel sales of 6,37,000 tonnes in July compared to the same period last year.

Last year in the same period, standalone steel sales were at 4,93,000 tonnes. Consolidated steel sales were higher by 25 per cent year-on-year to 7,62,000 tonnes during July 2020 as compared to 6,11,000 tonnes during the same period last year.

V R Sharma, the company’s managing director, said domestic steel demand was increasing as companies mended supply chains and people returned to work after a nationwide lockdown to contain the coronavirus. “Thanks to the government’s efforts to reboot the economy by announcing the stimulus package,” he said in a statement.

JSPL’s export sales contributed 39 per cent of total standalone sales in July 2020. Standalone steel production was higher by 13 per cent year-on-year to 6,03,000 tonnes in July 2020 while consolidated steel production increased 13 per cent to 7,40,000 tonnes.

Industry sources said that, in general, July 2020 numbers for most companies were better in terms of volumes on a year-on-year basis, largely because of pent-up demand.

JSIS Oman recorded an 11 per cent increase in production to 1,37,000 tonnes while JSIS Oman sales volumes increased by 6 per cent year-on-year to 1,25,00 tonnes, respectively.

JSPL said that in addition to the first-ever domestic order of head hardened rails of 3,000 tonnes from RVNL (Kolkata Metro), it had bagged orders from Pune Metro (3,000 tonnes) and Konkan Railway (1,960 tonnes).