India: Monnet Ispat to Add 100,000 MT Pellets and 50,000 DRI in Merchant Market - Sources

Monnet Ispat ramps up production post acquisition by JSW steel. Company plans to sell 100,000 MT Pellets and 40,000-50,000 MT DRI per month in merchant market from November onwards.

The insolvent Monnet Ispat Ltd, which is recently being taken over by Aion-JSW steel consortium is all set to increase production from its 1.5 million tonnes crude steel facility in the eastern state of India.

While company aims to optimise its production, availability of pellets and DRI from Monnet Ispat is expected to increase in merchant market untill company starts producing finished steel.

According to sources, Monnet Ispat targets to sell 100,000 MT pellets and 50,000 MT DRI in merchant market from November onwards.

The company has an installed capacity of 2 million tonne of annual pellet production and 0.8 million tonne coal based DRI plant.

Monnet has largest pellet plant in the state of Chattisgarh. State has an installed pellet capacity of around 7.8 MnT against production of around 5.4 MnT. Over and above Monnet's installed capacity of 2 MnT, Godawari Power's is 1.8 MnT, Bajrang Power and Ispat, Jayswal Neco, Sarda Energy, Raipur Power and Rashi Ispat's capacities are 1.2 MnT, 1.2 MnT, 0.6 MnT, 0.6 MnT, 0.4 MnT respectively.

From December this year, the company has fixed a target of manufacturing TMT bars using up about 25,000 MT of DRI from its own inventory.