JSPL aims to achieve 100% utilization of the Raigarh rail mill capacity for fiscal purposes
New Delhi, November 3 () The Jindal Steel and Power Ltd (JSPL) rail mill in Raigarh will reach 100 percent capacity by the end of this fiscal year, said a senior company official.
JSPL operates a railway mill of one million tons per year (mtpa) in its 3.6 mtpa integrated steel plant in Raigarh in Chhattisgarh.
About 70 percent of the plant's capacity has been used, said JSPL managing director, V R Sharma, adding that the unit can produce trains of 7.2 lakh tons per year.
We all know that the railways are in the process of renovating roads and will require rails for this mega project. We have already supplied rails to railroads in the past and we expect more orders of this type. Before increasing the capacity of the rail factory, we will reach our 100 percent capacity by the end of March, he said.
In July 2018, JSPL had pocketed an order to supply a lakh ton of rails from the Indian railways. In February 2019, the company again received an additional order of approximately 30,000 tons of long rails from the national carrier.
Speaking more about steel prices that fell to a minimum of 34 months of Rs 34,250 per ton during the second week of October due to low demand, he said the company expects an upward correction in prices in November.
While plates, rails, angles, channels and other steel items are working well, cold-rolled, galvanized and color-coated coils are down, Sharma said.
The slowdown in the pipe and pipe industry, tank manufacturing, oil tanks, in addition to the automotive sector problems, affected the hot rolled coil (HRC) market, he added.
I expect steel prices to rise in November as steel consumption increases during this period and remains until April, he said. Part of the USD 22 billion OP Jindal Group, JSPL has a presence in the steel, energy, mining and infrastructure sectors. ABI MKJ