Central India: Jindal Cuts Power in Raigarh Over Technical Issues

Production from induction furnaces located in OP Jindal Industrial Park in Punjipathra, Raigarh (central India) has remained disturbed since yesterday over power cut by Jindal, which is the sole supplier of power to the industries.

As per sources report to SteelMint, the furnaces in Punjipatra are now getting power for 8 hours a day amid some technical issues in one of transformers. Thus, production of standalone mills has been disturbed.

Following this, local ingot, billet prices rose by about INR 200-300/MT by closing of 22 Feb'20 and price assessment of ingot stood at INR 28,300/MT ex-Raigarh . It is expected that prices may rise further in the coming days.

There are about 30-40 furnaces in Punjipatra Industrial area with average production of about 3,000-4,000 MT ingot/billet per day and supply material mostly to north-east regions as well as Raipur.

Participants believe with the curtailed power, ingot & billet prices in the local market as well neighboring states may increase and lead to material shortage.

In line with this, it may impact sponge iron market and prices may come under pressure as consumption of sponge iron may come down with lessened furnace operations.