Crude steel production for JSW Steel grew to 4.11mn tonnes for Q3FY18 from 3.86mn tonnes in Q3FY17, an increase of 6.5% yoy. This increase was due to the 18.9% yoy growth in production of long products for the company. The management has stated that the sharp rise in long steel production came from rising demand from construction activity in the country. Company’s focus on increased production and higher realizations has helped it sustain a weak demand environment. Volume growth over FY17-19E is expected at 4% CAGR. Government’s measures like minimum import price (MIP) and anti-dumping duties are expected to support indigenous steel producers and improve realizations.
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