Maharashtra’s Jalna is one of the biggest hubs of the secondary steel industry in Central India. It is also famous for its seeds, oil mills, refineries and steel re-rolling. That apart, its plastics, tiles, cement pipes, fertilizers and insecticides industries and co-operative sugar factories have also played an important part in its industrial development.
A total of 12 secondary steel mills are located in the Jalna Maharashtra Industrial Development Corporation (MIDC) area. These mills, although small, have large capacities. The 12 steel plants together boast of 27-30 induction furnaces (IFs) and their total crude steel-making capacity is 9,648 tonnes per day (tpd), which is expected to increase to 12,000-13,000 tpd by FY2022-23 (FY23) as per their expansion plans.
In addition, there are around 12-13 re-rolling mills for downstream manufacturing, SteelMint learned during a recent visit to Jalna.
Major manufacturing plants/capacity
Basic raw materials consumed
Scrap type | grade | delta | Spread
Sourcing of raw materials
Steel producers in Jalna buy scrap of around 190,000-200,000 tonnes and about 75,000-80,000 tonnes of sponge iron per month.
Domestic scrap: Where domestic melting scrap is concerned, it is procured from cities within a radius of 150-200 KM of Jalna (Aurangabad, Bhusawal, Akola, Ahmednagar, Nagpur, Nasik, Pune ,Mumbai etc). CR-busheling/punching and other automobile scrap are sourced from Pune and Nasik and some amount of high grade material — like ship-breaking scrap — comes from Bhavnagar, Gujarat.
Imported scrap: A majority of buyers prefer imported scrap arriving at Maharashtra Nhava Sheva Port and the nearest inland container depot (ICD) facility available is at Maliwada (about 40-50 km from Jalna). The Jalna ICD is a proposed dry port located near Aurangabad, Maharashtra, to be developed by the Jawaharlal Nehru Port Trust (JNPT). The new dry port will be spread over 180 hectares. The ICD is expected to be one of the largest container ports in India.
Sponge iron and ferro alloys
The Jalna steel-makers require around 75,000 tonnes of sponge iron per month, preferably CDRI Fe80%. The sponge iron and ferro alloys are primarily obtained from Raipur, Raigad and Odisha area (with a marked preference for Tata sponge iron) with some quantities coming in from Chandrapur (Llyod’s sponge iron) and Bellary in Karnataka.
Freight charges:
Note : SteelMint is currently doing daily price assessments for HMS(80:20) and CR-busheling scrap for Jalna region.
For more details and to become a data partner with SteelMint, please contact below:
Article writer: Mr S Shankar (Manager, domestic scrap) +916263904671
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