JSW Steel, India’s largest & private steel manufacturer has resumed sales for its gas based DRI with sharp hike in prices. SteelMint learnt from market sources that prices have been increased by INR 1,000-1,500/MT. The company has annual DRI (Sponge iron) production capacity at 1.6 MnT.
According to trade participants, the latest offers are hovering is around INR 20,000-20,500/MT (USD 312-320) which was last heard at INR 18,500-19,000/MT (USD 285-295) during Jun’17. The material is produced & offered on ex-works basis from its dolvi, Maharashtra based.
JSW offers have increased in line with higher scrap and sponge iron prices in domestic market by other private players. Although, JSW is not a regular supplier of DRI in merchant market and largely used for its own consumption.
If sources are to be believed, large quantity is being sold to non-alloy steel makers based in Maharashtra as the offers are competitive than coal based Sponge iron from Odisha & Karnataka, for which landed cost is higher.
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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