JSW Steel, India’s 2nd largest & private steel manufacturer has reduced gas based DRI prices by INR 500/MT (USD 8), according to trade participants.
It is observed that weak demand has forced the producer to cut prices.
The latest offers by the company are heard at INR 18,500-19,000/MT (USD 285-295) ex-works. The material is produced & offered from its dolvi, Maharashtra based plant.
On an average, company offers approximately 15,000 MT per month in merchant market against an annual capacity of 1.6 MnT.
JSW produced DRI is largely preferred by the Alloy (Special Steel) steel manufacturers due to high Fe content. Generally, their offers are higher than the coal based sponge iron.
Notably, landed cost of sponge lumps from Odisha & Karnataka to Maharashtra is about INR 17,000-17,500/MT (including CST & Freight). While, JSW sponge offers at INR 18,500-19,000/MT basic & ex-plant basis.
JSW has annual crude steel capacity of 18.00 MnT in which during FY17 the production are reported 15.8 MnT. The Company’s exports have increased significantly in FY17 (Apr’16 – Mar’17) owing to higher prices in global market.
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