JSW Steel, India’s largest private steel producer has reduced its gas based DRI (sponge iron) offers by around INR 500/MT (USD 8) for Feb 2018 deliveries, according to the trade participant. Prior to this in Jan the company had sharply raise prices by INR 2,000-2,500/MT.
The current offers for FeM 80-82 DRI are reported at INR 22,500/MT (USD 350) which was last assessed at INR 23,000/MT (USD 358) in Jan’18. The material is produced & offered from its Dolvi, Maharashtra based plant, ex-works.
According to sources the reason behind the recent price fall by JSW Steel is slump prices by other small producers based in Central, East & Southern India which reported decline of INR 1,500-1,800/MT (USD 23-28) post 15th Jan’18 to till date, according to SteelMint price assessment.
Also as the prices were quite high during last month compared to offered by other suppliers, the steel large has to reduce its DRI prices in line to fetch bookings.
Current offers for sponge P-DRI are hovering at INR 19,600-19,800/MT ex-Raipur & ex-Bellary, Central & South India which landed cost to Maharashtra (Mumbai & Jalna) would be around INR 22,000/MT including Freight & excluding 18% GST.
JSW Steel has annual DRI (Sponge iron) production capacity of 1.6 MnT in Dolvi plant. The overall crude steel capacity of company is at 18.00 MnT in which the production during FY17 stood at 15.8 MnT.
The steel large recorded highest ever crude steel output in Jan’18 recording an yearly increase of 7% along with boost in long steel production by 24% Y-o-Y. The crude steel production in Jan’ 18 recorded at 1.46 MnT compared to 1.36 MnT in Jan’17. On monthly basis the company’s crude steel output went up by 4% in Jan’18 which was at 1.41 MnT in preceding month.
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