Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Induction furnaces located in Jindal industrial park at Punjipathra in Raigarh faced a power cut by Jindal which is the sole supplier of power to the industries due to the non-payment of the bills.


There are around 35-40 furnaces in the Punjipathra industrial area with an average daily production of 4,000/mt of ingot/billet. Around 14-15 induction furnaces located in Jindal industrial park, Punjipathra, Raigarh are shut due to a power cut. Lower production could lift prices of ingots and billets in central India while weighing down sponge iron prices, sources said.


Meanwhile, in Maharashtra, government cuts power subsidy, which could raise the input cost for steel plants operating in the state. The power tariff for industries currently stands at Rs7/unit and Maharashtra State Electricity Distribution Company (MSEDCL) has removed the subsidy of Rs1.30/mt for manufacturing industries in Jalna, Wada, etc. The rise in power prices could impact the prices of the end product in the near term.

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