Sources reported to SteelMint that induction furnaces in Raigarh, which have been closed since 1 Apr’16 due to no power supply from JSPL, are likely to resume from today i.e 13 Apr’16.
JSPL, who had sent notice to induction operators on 30 Mar’16 for curtailment of power supply w.e.f 1 Apr’16, has settled its deal with Raigarh based induction furnaces at INR 4.20/unit.
Mr Ashok Surana, President of Mini Steel Plant Association (MSP) reported, “Power supply will resume from today midnight i.e from 12:00 pm and plants will be operational as JSPL has agreed to provide power at INR 4.20/unit instead of earlier INR 2.50/unit.”
About 23-24 induction furnaces in the state that produce approx 2,500 MT steel per day, including three ferro units in Jindal Industrial park Punjipatra have been reported to shutdown since 11 days. These units are now expected to resume operation from today and will receive power supply from 12:00 pm midnight, reported sources.
Amid closer of industries, sponge offers in the state fell by INR 500/MT to INR 11,600-11,700/MT. However, ingot offers have almost remained stable to INR 21,800-21,900/MT.
It has also pressurized Raipur based sponge makers as Raigarh used to supply sponge to Raipur at cheaper rates by INR 300-400/MT against offers by local manufacturers. However, there are no recent deals concluded during last 4-5 days, stated few sponge agents.
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