Induction Furnaces at Chattisgarh to cut production on high input cost

Ingot manufacturers in Chattisgarh are facing cost pressure from high input prices like power and sponge iron. Manufacturers are left with no other option but to cut production levels in order to minimize losses.

“Due to increase in power prices to Rs3.80 per unit we required a minimum conversion of Rs 10,200-10,500 per tonne from Sponge to Ingot. Sponge is available at Rs 23500 and Ingot is being sold at Rs 32,800-33,000/t. In today scenario Ingot should sell at Rs 33000 and sponge should be available at Rs 23000 to run the plant in no profit and loss” said an ingot manufacturer based in Raipur.

He also added, “As production comes down the pressure will be built on Sponge and scrap prices.”