New Delhi: India's JSW Steel Ltd expects export activity to surge in the present quarter due to the repeal of an export tax and strong demand from the Middle East and Asia, according to a top executive on Saturday. The company is confident that these factors will contribute to increased exports during this period.

JSW Steel Ltd, India's largest Steel producer by volume, reported a sharp 89% drop in profits for the quarter ending December 31, 2020, due to a 56% decrease in exports to 1.14 million tonnes compared with the same period a year prior. The senior executive's comments follow this announcement.

"Exports will definitely improve in Q4," Seshagiri Rao M.V.S., joint managing director and group chief financial officer, stated that exports are anticipated to make up more than 10% of total sales in 2022/23.

JSW Steel estimates that it will sell 22.6 million tonnes of Steel in the 2022/23 fiscal year, according to Rao; with production estimated at 23.6 million tonnes.

Rao noted that demand for Steel from Europe had been weak, while the imposition of "very severe" local production cuts has allowed the company to increase its exports.

During the first nine months of the fiscal year that began in April 2022, India's exports of finished Steel more than halved due to the government imposing an export tax on some Steel intermediates in May. In November, this tax was withdrawn, but mills still reported a decrease in their share in conventional markets such as Europe.

Rao additionally expressed his worries about the chance of Steel from China and Russia being dumped into India.

"The global economy is not doing well ... Everybody is looking for markets where they can sell. India is a bright spot," he said.

Rao stated that the company is not currently seeking to raise funds through sustainability-linked bonds overseas, despite ambitious goals concerning reducing carbon emissions.

"Currently, we are not looking at raising from international markets because of unfavorable financial conditions."

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