Business Standard reported that JSW Steel Limited is likely to take further cuts in steel production if the iron ore supply situation does not improve in the next one month.
As per report,JSW is currently working with an inventory sufficient for just one month.
Mr Seshagiri Rao MVS joint MD&group CFO of JSW Steel Limited said that"We are currently working with iron ore bought in E auctions,which is sufficient for the month of December.We produced only 69%of the installed capacity in the month of November,compared to 80%in October this year.If the supply situation does not improve,we may have to take further cuts in the coming months."
Mr Rao said that the company produced 762,000 tonnes of steel in the month of October and 600,000 tonnes in November mainly due to non availability of iron ore
He said that"There is an immediate need for easing of the iron ore situation in Karnataka.We have requested the state and central governments to put on auction low-grade dumps and enable NMDC to increase their production to one million tonnes per month besides opening up of all Category A mines approved by the apex court."
He added that JSW Steel requires about 1.5 million tonnes per month and the company is currently running at less than one month's stock.
Source-Business Standard