India's Jindal Steel intends to rely on more cost-effective grades of high-value-added steel and increase the utilization of its domestic crude steel production capacity to 15.6 million tons per year, the company said last weekend.
At the same time, the company plans to abandon the production of commercial steel and focus on specialized products. The share of sales of value—added products in April-June increased to 66% against 61% in January—March.
"We are not in a race to launch new hot—rolled strip or commercial steel plants," Jindal Steel's new managing director, V. R. Sharma, said on a conference call on July 25.
According to him, the company will continue to produce rebar as a marketable product, however, it does not consider the production of hot-rolled coils (HRC) without added value to be a priority.
Jindal Steel does not expect crude steel output to reach an installed capacity of 15.6 million tons in the current fiscal year, which ends in March 2027. According to Sharma, the company is likely to produce about 11.5 million tons of crude steel using existing blast furnaces, electric arc furnaces and existing metal reserves. Later, the company may reconfigure blast furnaces to further increase production, he added.
The company also plans to import direct reduction cast iron and hot briquetted cast iron amid metal shortages.
In April— June, crude steel production at Jindal plants increased by 14% year-on-year, to 2.4 million tons, but was 9% lower than a quarter earlier. Sales amounted to 2.23 million tons, which is 17% more than a year earlier, but 15% less than in the previous quarter. According to the company, scheduled maintenance shutdowns at key facilities limited both output and sales during the quarter.
Starting in September, the company intends to increase production amid ongoing disruptions due to heavy rainfall.
Jindal Steel's net profit in April — June decreased by 43% compared to the same period last year and amounted to 8.45 billion rupees ($88 million). The drop in sales was partially offset by rising steel prices and an increase in the share of value-added products, Jindal said. Weekly quality assessment
,Argus's production of 2.5–4.00 mm thick materials in the Indian domestic market has increased by 27% since mid-December and reached a multi-year high of 59,000 rupees per ton in early April. Then, during the monsoon season, prices came under pressure and on July 24 were estimated at 57,250 rupees per ton, but a further decline was prevented by a reduction in supply.
