en.Wedoany.com Reported - Data released by JSW Steel shows that the company's consolidated crude steel output in May 2026 reached 2.293 million tons, a year-on-year increase of 15% compared to 1.996 million tons in the same period of 2025. The output growth was primarily driven by the resumption of full production at the Dolvi plant and the full ramp-up of JSW Vijayanagar Metallics Ltd. (JVML), which partially offset the production loss caused by the shutdown of Blast Furnace 3 (BF-3) at the Vijayanagar plant.
The company's crude steel output from its Indian operations increased to 2.198 million tons, up 15% from 1.917 million tons in May 2025. During the same period, output from JSW Steel's plant in Ohio, USA, reached 95,000 tons, higher than the 79,000 tons in the same period last year, an increase of 20%.
To facilitate year-on-year comparison, the company has adjusted the production data for May 2025, excluding the output of the former Bhushan Power & Steel Ltd. (BPSL), which was transferred to JSW-JFE Steel Ltd. in March 2026.
JSW Steel attributed the output growth to the normalization of operations at the Dolvi plant, which had been affected in May last year by a planned maintenance shutdown of a blast furnace. Meanwhile, JVML operated at full capacity during the month, supporting overall output despite the ongoing shutdown of Blast Furnace 3 at the Vijayanagar plant for capacity enhancement work.
The company expects Blast Furnace 3 to restart in the second half of June 2026. Excluding this idle furnace, the capacity utilization rate for Indian operations is approximately 98%; including Blast Furnace 3, the overall capacity utilization rate is 87%, reflecting strong operational performance of the remaining production assets.
Against the backdrop of recovering output, Indian integrated steel companies are maintaining high utilization rates despite weak domestic demand. The increased output from JSW Steel is expected to improve the supply of flat and long steel products in the domestic market in June and July, especially after Blast Furnace 3 resumes operations. However, demand-side fundamentals remain relatively weak. With the onset of the monsoon season, construction activities are beginning to slow down, while dealers in multiple regions continue to purchase on a need-to-order basis amid uncertain price outlooks. Therefore, unless supported by stronger infrastructure spending and a seasonal demand recovery after the monsoon, the output increase is unlikely to immediately drive price hikes.
The restart of Blast Furnace 3 is a key milestone in JSW Steel's brownfield expansion plan at its flagship Vijayanagar production base. The upgraded furnace is expected to improve hot metal supply, increase crude steel output, and support the company's long-term capacity target transition to 54.8 million tons per year over the next four years. Leveraging its integrated operations, captive raw material security, and continuous improvement in operational efficiency, JSW Steel can maintain high capacity utilization rates despite temporary maintenance shutdowns. Compared to the supply disruptions experienced over the past two years, the company's current output performance also reflects a stabilization in raw material supply, particularly iron ore and coking coal.
The expected restart of Blast Furnace 3 at the Vijayanagar plant in the second half of June is likely to support higher crude steel output and improve product availability in the first quarter of fiscal year 2027. As capacity utilization normalizes, JSW Steel is expected to strengthen domestic dispatches while maintaining operational efficiency. However, as steel demand typically slows during the monsoon season, the market's ability to absorb the additional output will remain a key factor. The recovery of infrastructure activities, construction demand, and export opportunities will be crucial to supporting higher output without exerting further pressure on domestic steel prices.
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