India: JSW Steel Reduces Gas based DRI Price by INR 750/MT (USD 11)

JSW Steel, India's largest private steel producer has reduced its gas based DRI (sponge iron) offers by around INR 750/MT (USD 11) for Oct'19 deliveries, sources closed with the company reported.

SteelMint learned that, the fresh offers for Oct'19 is about INR 17,500/MT (USD 246), which was at INR 18,250/MT (USD 257) in Sep'19, ex-works, Dolvi, Maharashtra based plant for FeM 80-82%.

Prior to this, during Sep'19 the company had raised prices by INR 750/MT (USD 11) due to surge in price range by mid sized plants on short supply. However as the steel prices continued downtrend since couple of weeks, the producer has cut prices in line with them to compete with prevailing offers in market.

It was also learned that during Sep'19, the company sold close to 20,000-30,000 MT DRI in merchant market to the Wada, Jalna & Nashik based furnaces. However as the hefty volumes are available with the producer, it has slashed prices to take healthy bookings for this month too.

The company has annual DRI (Sponge iron) production capacity of 1.6 MnT in it's Dolvi plant. JSW Steel Dolvi is expanding it's steel capacity from 5 MnT pa to 10 MnT pa.

-- Current offers for sponge C-DRI 80 FeM by 100-500 TPD manufacturers are hovering at INR 16,300-16,500/MT ex-Bellary - South India and ex-Rourkela - East India. The freight cost for Jalna from Bellary is about INR 1,300-1,400/MT from Rourkela at INR 1,900-2,000/MT.

-- Central India based JSW's Monnet Ispat has offered sponge P-DRI (DRI produced through pellets) at INR 15,600/MT ex-Raipur. As per officials, small parcels sold in local market.

source: SteelMint