SteelMint learned from market sources that honourable high court has ordered Jindal Steel and Power Ltd (JSPL) to resume power supply to furnaces located in Jindal’s industrial park in Raigarh (Chhattisgarh), which has been irregular for last few months.
There are about 25-30 induction furnaces installed in O.P. Jindal’s industrial park located in Punjipatra, Raigarh and produces about 80,000 MT of ingots/billets every month.
What may happen
Since the inductions were closed in Raigarh, the prices of Ingot/Billet was supported in surrounding markets, while sponge producers were under selling pressure due to low demand.
It seems that with the resume operations by Inductions, local ingot/billet prices to come under pressure, however with improved consumption sponge prices to get support.
Current prices in Raigarh, Central India are assessed for MS Ingot at INR 33,800/MT, Billet at INR 34,500/MT, Sponge C-DRI at INR 21,000/MT & P-DRI at INR 19,000/MT, ex-plant & immediate payment terms.
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