JSW Steel, one of the largest Indian steelmakers, has announced that in the first quarter this year it maintained a safe level of cash and reduced its coal inventory by over 20 percent despite the continuing decline in global coking coal prices and a two-week long strike in the given quarter.
According to the company's statement, in the first three months of the current year JSW's coal production fell by one-sixth from the previous quarter to 3.6 million mt as a result of the strike. However, in March, the company returned to record its highest monthly and daily production levels, following the intensification of mining work.
In the first three months, JSW's sales fell by only seven percent quarter on quarter despite low coking coal prices, while coal inventories as of the end of the quarter had declined to 994,600 mt compared to 1.26 million mt registered at the end of December 2014.
Edward, Szlek, president of JSW's management board, stated, "As a result of the losses that resulted from the strike and the disadvantageous macroeconomic environment, we have been implementing a deeper restructuring program. We have put emphasis on a significant reduction of operating expenses to resture the group's profitability. The agreement with the trade unions has allowed us to make savings also in relations with our employees."