According to the market, sources report to SteelMint – Monnet Ispat and Energy Limited has commenced pellet sales in the merchant market. The company has 2 MnT capacity Pellet plant.
Monnet Ispat and Energy Limited, once a stressed asset, seems to be finally returning on the recovery path. Although the company reported losses in the July-September quarter, the steel manufacturer had trial production from its 2 MnT pellet plant which was commissioned sometime in 2015-2016 but was not able to operate at optimum capacity. And SteelMint had reported in previous articles that it is likely to commence pellet sales in the merchant market after Diwali holidays.
In the latest update received on this, current offers from pellet maker is assessed at INR 7,000-7,100/MT (Ex- Raigarh). Also, the company has ramped up its DRI production hence increased captive usage.
JSW Steels’ Turnaround plans for Monnet Ispat & Power
In recently conducted quarterly conference call results, JSW Steel announced the turnaround plan for recently acquired Monnet Ispat & Energy Limited in three phases in which only DRI unit was operational. In 1st phase, JSW is planned to commission pellet, sinter, blast furnace, caster under TMT bar in Q3 FY19. In the 2nd phase, company is planning to bring capacity utilization in line with laid crude steel capacity of 1.5 MnT and in phase-III company may look forward on increasing capacity.
Monnet Ispat, once one of the country’s foremost steelmakers, ran a successful steel plant with an annual capacity of 1.5 million tonnes in Chhattisgarh. It ran into problems when coal mines attached to the plant were canceled in 2014 after a Supreme Court order. Crashing steel prices on account of Chinese dumping further aggravated its crisis and resulted into bankruptcy proceedings.
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