India’s JSW Steel sees exports at more than 10% of 2022/23 sales

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His comments come after JSW, India’s largest steelmaker by capacity, on Friday reported an 89% drop in profits for the three months ended December 31, hurt from a 56% drop in exports from a year earlier to 1.14 million tonnes.

“Exports will definitely improve in Q4,” Seshagiri RaoM.VS, the group’s joint managing director and chief financial officer, told Reuters in an interview, adding that for 2022/23, shipments were expected to be more than 10% of total sales.

JSW Steel expects to sell 22.6 million tonnes of steel in the 2022/23 fiscal year, Rao said, while production is seen at 23.6 million tonnes.

Rao said demand for steel from Europe was weak but the decline in local production was “very severe”, helping the company to boost exports.

India’s exports of finished steel more than halved during the first nine months of the fiscal year that began in April 2022, hit by the government’s decision to impose an export tax in May on some steel intermediates. T

The tax was lifted in November but mills complained of a loss of share in traditional markets, including Europe.

Rao also said there were concerns about the potential dumping of steel from China and Russia into the country.

“The global economy is not doing well … Everyone is looking for markets where they can sell. India is definitely a strong place,” he said.

Rao said the company was not looking to raise funds through sustainability-linked bonds abroad at the moment despite ambitious commitments to reduce carbon emissions.

“Currently, we are not looking at collecting from international markets due to unfavorable financial conditions.”

In 2021, JSW Steel raised $500 million from bonds linked to sustainability, which are linked to the issuer meeting certain environmental, social and governance goals.

(Reporting by Neha Arora; Editing by Mayank Bhardwaj and David Holmes)

By Neha Arora

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