After High Court order to Jindal Steel & Power Ltd (JSPL) to supply electricity at Rs 4.20/unit on 25th June, SteelMint learned from the market sources that JSPL has further subsidized rate to Rs 4/unit as demanded by the local mills.
For the past 2 weeks the issue related to JSPL and the Mills located in Jindal’s industrial park in Raigarh (Chhattisgarh) has been in the High Court hearing due to the irregular power supply. There are about 25-30 induction furnaces installed in O.P. Jindal’s industrial park located in Punjipatra, Raigarh that produces about 80,000 MT of ingots/billets every month.
With the resumption of the mills operations, the local billet/ingot prices might come under pressure but as the sponge consumption increases in the local market the prices of sponge iron will be supported. The next hearing date is on 24 July 2018.
Current prices in Raigarh hovering – Ingot at INR 33,000/MT, Billet at INR 33,500-33,700/MT, Sponge C-DRI at INR 21,000/MT & P-DRI at INR 19,000-19,200/MT ex-plant & excluding 18% GST.
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