Steel Industries in Jindal’s punjipatra Industrial park, Raigarh are to face closure from 1st June 2018 onwards as power supply is expected to be disrupted by Jindal Steel & Power Ltd (JSPL), as per company’s letter to its users issued yesterday.
The notification reads that the company is facing irregularity in coal availability supplied through Coal India Ltd (CIL) via e-auction. Thus, power generation for other industries will be on hold from 1st June 2018.
After the power cut announcement notification was announced by JSPL, the local producers in Raigarh have sharply raised prices, the current prices of Ingot evaluated at INR 33,400-33,600/MT, Billet at INR 34,500-34,700/MT & TMT (12 mm) at INR 39,100-39,300/MT; ex-plant & excluding GST.
There are about 25-28 induction furnaces in the industrial park, which produces approx 70,000-80,000 MT ingot/billet per month and caters primarily to North India.
What may happen ?
— Local Sponge & Pig iron manufacturers may come under pressure as with halt in Induction operations raw materials consumption shall to come an end.
— Ingot, Billet & Rebar prices in neighboring states are likely to get support as Raigarh is the major merchant supplier of the respected products.
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