Central India Semis Price Up Amid Hampered Production Over Power Cut

Induction furnaces based in Jindal's industrial park in Punjipatra, Raigarh (Central India) has reported fall in production since 1st April due to power cuts by Jindal power ltd (JPL) for 5-6 hrs/day.

As per them, "JPL has withdrawn power supply over less availability of coal for units located in the industrial park."

Meanwhile sources stated that, offers may rally on expected further increase in power cut issue, leading to fall in production of standalone furnaces who don't have their own power production.

Raigarh is one of the prominent merchant billet and ingot producing region, located in central part of India. Raigarh has about 30 induction furnaces, which have monthly production capacity of around 80,000 MT.

Jindal Power Ltd, the first domestic private sector player to commission an independent power plant (IPP) in 2007, has a total installed capacity of 3,400 MW set up at coal pitheads. This includes a 1,000 MW plant (250 MWx4) located at Raigarh district of Chhattisgarh, and another plant of 2,400 MW (600 MWx4) capacity, located at Tamnar in the same state.

Present price of MS ingot in Raigarh are assessed at INR 30,800-30,900/MT, billet at INR 31,300-31,400/MT, Sponge C-DRI at INR 19,000-19,200/MT and P-DRI at INR 18,000/MT; ex-plant, excluding 18% GST. The prices moved up by INR 500/MT (USD 7) in last couple of days.