Shares of JSW Steel plunged over 4%, touching the day's low of Rs753.85, after the company said its crude steel production was severely impacted in February 2012 due to usage of inferior grades of iron ore.
JSW Steel's crude steel production rose 13% to 6.10 lakh tonnes in February 2012 over February 2011. The production of flat steel products rose 1% to 4.47 lakh tonnes in February 2012 over February 2011. Production of long steel products jumped 103% to 1.52 lakh tonnes in February 2012 over February 2011.
JSW Steel said that the quality of iron ore being offered in E-auction is deteriorating substantially. Further, certain iron ore in E-auctions contained high Alumina, Silica, Manganese and low Fe, which led to poor Sinter quality, high slag formation and low productivity in the blast furnaces.
The quantity of iron ore sold in the E-auction during entire month of February 2012 was only 1.17 million tonnes in all 6 E-auctions together as against the industry requirement of 3 million tonnes per month, the company said. Even after paying higher prices in E-auctions, the availability of quality iron ore is a challenge, threatening the continuation of steel production efficiently, JSW Steel said. The steel industry in Karnataka region, therefore is not only facing shortage of iron ore but poor quality of iron ore is impacting the equipment, productivity and efficiency, JSW Steel said in a statement.
Since Central Empowered Committee ( CEC) recommended opening up of clean mines (Category A), the company expects that the Supreme Court will permit mining atleast in Category A mines, JSW Steel said.
On a consolidated basis, JSW Steel reported net loss of Rs47.89 crore in Q3 December 2011, compared with net profit of Rs291.72 crore in Q3 December 2010. Net sales rose 40.9% to Rs8404.66 crore in Q3 December 2011 over Q3 December 2010
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JSW Steel's crude steel production rose 13% to 6.10 lakh tonnes in February 2012 over February 2011. The production of flat steel products rose 1% to 4.47 lakh tonnes in February 2012 over February 2011. Production of long steel products jumped 103% to 1.52 lakh tonnes in February 2012 over February 2011.
JSW Steel said that the quality of iron ore being offered in E-auction is deteriorating substantially. Further, certain iron ore in E-auctions contained high Alumina, Silica, Manganese and low Fe, which led to poor Sinter quality, high slag formation and low productivity in the blast furnaces.
The quantity of iron ore sold in the E-auction during entire month of February 2012 was only 1.17 million tonnes in all 6 E-auctions together as against the industry requirement of 3 million tonnes per month, the company said. Even after paying higher prices in E-auctions, the availability of quality iron ore is a challenge, threatening the continuation of steel production efficiently, JSW Steel said. The steel industry in Karnataka region, therefore is not only facing shortage of iron ore but poor quality of iron ore is impacting the equipment, productivity and efficiency, JSW Steel said in a statement.
Since Central Empowered Committee ( CEC) recommended opening up of clean mines (Category A), the company expects that the Supreme Court will permit mining atleast in Category A mines, JSW Steel said.
On a consolidated basis, JSW Steel reported net loss of Rs47.89 crore in Q3 December 2011, compared with net profit of Rs291.72 crore in Q3 December 2010. Net sales rose 40.9% to Rs8404.66 crore in Q3 December 2011 over Q3 December 2010
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