Steel Mills

"Formidable Challenges" Result in Losses for JSW

July 24, 2020

India-based steelmaker JSW Steel posted its first loss in six years in Q1 of FY 2021 after what it called “formidable challenges” related to the COVID-19 pandemic. The quarter was marked by “disrupted supply chains, unparalleled drop in demand and activity levels in the domestic markets, uncertainty in seamless inbound and outbound logistics movement, and liquidity constraints.” Net loss for the company was INR 582 crore ($77.8 million).

The company’s U.S. divisions contributed to the quarterly loss as COVID 19 and a weak energy market impacted operations in Texas and Ohio.

JSW Baytown posted an EBITDA loss of $11.4 million on revenue of $46.35 million. The plate mill operated at 23 percent capacity producing 57,035 tons for the quarter and posting sales of 53,210 tons. Baytown’s pipe mill operated at a 3 percent utilization rate producing 4,611 tons for the quarter.

Hot rolled coil production at the Mingo Junction, Ohio, mill totaled 26,954 tons with HRC sales of 48,865 tons. Revenue was $29.39 million for an operating loss of $12.54 million. The operations in Ohio are temporarily idled for a furnace upgrade that will improve reliability and lower conversion costs, the company said.