JSW Steel operations in the U.S. contributed little to company earnings results in the third quarter of FY 2021.
JSW Steel Ohio sold 10,892 metric tons during the quarter. Revenue from operations was $5.48 million resulting in an operating EBITDA loss of $21.26 million. The mill was idled early in the second quarter and did not produce any hot rolled coil during Q3.
The plant remains idled for an upgrade to its electric arc furnace. The Jefferson County Port Authority is working with the JSW Steel Mill to issue bonds up to $41 million that will be used for the modernization of the furnace and caster line. Port Authority Executive Director Robert Naylor said the project is under way and once the upgrades are completed, the mill should be ready to resume operations.
JSW’s U.S. Plate & Pipe mill in Baytown, Texas, is under planned shutdown. The plate mill produced 2,578 MT of plate in Q3 FY 2021, compared to 70,479 MT in the prior year’s quarter. No pipe products were produced. Sales volume totaled 18,183 MT from the plate mill and 150 MT from the pipe mill. Revenue was $10.43 million for an EBITDA loss of $8.45 million.
The Baytown facility rerolls steel slab and faced significant challenges in 2020 from changes to the quota system on steel slab imported from Brazil. In October, JSW Steel USA CEO Mark Bush said the upgrades at the Ohio mill at Mingo Junction will provide slabs for Baytown beginning in Q2 2021. Bush, who was brought in as CEO of the U.S. operations in August, hopes to restart both locations around the same time.
A planned, but delayed, expansion at Baytown includes a new EAF, slab caster and plate mill. Bush said upon his appointment as CEO, “The first priority is to get the expansion projects commissioned. The current and future projects will be transformational.”
Net profit for parent company, JSW Steel Ltd., rose 67 percent from Q2 to its highest level in 10 quarters as the India economy reopened after COVID-19 shutdowns. Production jumped 6 percent and average capacity utilization rose to 91 percent from 86 percent in Q2. Improved domestic performance helped to offset losses at all of its subsidiaries abroad.
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