India: JSW Steel Offers Gas based DRI

JSW Steel - India's largest private steel producer has offers gas based DRI (sponge iron) in merchant market, according to trade participants.

The latest offers for FeM 80-82 DRI are reported at around INR 24,000-24,250/MT (USD 329-333) ex-works. The material is produced and offered from its Dolvi, Maharashtra based plant.

According to participants, there are no major bookings by local Ingot/billet makers as landed cost of sponge iron from South India is cheaper by around INR 1,000/MT. However Special steel makers are more interested to melt JSW sponge to produce fine quality steel.

The Ingot/billet manufacturers in Mumbai and surrounding markets reported landed cost of sponge iron of Bellary Sponge iron lumps (C-DRI, FeM 80) is at around INR 23,500-24,000/MT. While, JSW ex-works prices are hovering at INR 24,000-24,250/MT for which landed cost would be not less than of INR 25,000/MT. Both prices are excluding GST @ 18%

Current offers for sponge C-DRI lumps FeM 80 are hovering at INR 21,500-21,700/MT ex-Bellary - South India.

JSW Steel has annual DRI (Sponge iron) production capacity of 1.6 MnT in Dolvi plant. With the revival in Indian steel sector demand, JSW Steel with 18 MnT pa installed crude steel capacity has announced a capital expenditure plan of INR 44,415 crore to increase this to 24.7 MnT pa by FY21.

In recent announced quarterly results, the company reported increase in crude steel output by 6% Y-o-Y in H1 FY19. Company's crude steel output registered at 8.30 MnT in H1 FY19 (Apr-Sep), higher by 6% against 7.86 MnT in H1 FY18.

JSW Steel, Dolvi Plant, Iron ore Sourcing

Quantity MT
Source: SteelMint