Steel Mills

Losses Keep JSW Steel USA Idled Until March 2021

Written by Sandy Williams


JSW Steel’s assets in Texas and Ohio both reported losses for the second quarter of FY 2021. At Baytown, the pipe mill remained idled and the plate mill operated at only 22 percent of capacity, producing 54,137 metric tons. EBITDA for the subsidiary was positive at $17.24 million, but only due to a $30.4 million one-off credit.

The Mingo Junction, Ohio, facility produced 4,501 metric tons of hot rolled coil before being idled early in the quarter. Revenue was $18.43 million, but the segment posted an EBITDA  loss of $10.52 million.

JSW Steel Ltd. CFO Seshagiri Rao said the losses at the U.S. subsidiaries are gradually narrowing. The Tubular segment at Baytown was expected to improve in Q4 FY 2020, but further quota restrictions on imports of slab from Brazil made it too challenging to continue operations. Operations have been idled in both Texas and Mingo Junction until March 2021 when operating conditions are expected to improve. During the downtime, both locations will be modernized to improve performance, the company said.

JSW Steel Ltd. consolidated net earnings totaled 1,595 crores ($216 million). Sales increased 49 percent quarter-over-quarter to 4.15 million metric tons.

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