JSW Steel Increases Gas based DRI Prices

JSW Steel, India's largest private steel producer has raised its gas based DRI (sponge iron) offers by INR 2,000-2,500/MT, (USD 31-39) for Jan deliveries.

The current offers for FeM 80-82 DRI are reported at INR 23,000/MT (USD 368) which was last reported at INR 20,000-20,500/MT in Dec'17. The material is produced & offered from its Dolvi, Maharashtra based plant, ex-works.

According to a close source with JSW, "the reason behind the price rise is less availability of material amid higher offers by other small sponge producers on sharp surge in offers. Also, as the company has healthy orders in hand across materials, the offer rise is natural" , he added.

Notably, the private producers in Central, East & South India which are the key supplier of sponge iron to Western India have raised their prices by around INR 2,500-3,000/MT (USD 39-47) in a month. Presently, landed cost of sponge iron from South & East to Western India (Maharashtra) is calculated at around INR 23,000-24,000/MT, excluding 18% GST.

JSW Steel has annual DRI (Sponge iron) production capacity of 1.6 MnT in Dolvi plant. The overall crude steel capacity of company is at 18.00 MnT in which the production during FY17 stood at 15.8 MnT.

The company achieved crude steel output of 1.362 MnT in Nov'17 which was at 1.227 MnT in previous year. Further, the crude steel production moved up by 1.4% in Nov'17 in comparison to 1.343 MnT in Oct'17.