India: JSPL Re-Starts DRI Plant in Angul, Odisha
Jindal Steel and Power (JSPL) in press release today reported that, the producer has re-started 1.8 MnT per annum Sponge iron plant at Angul steel complex, Odisha.
The DRI (sponge iron) facility is powered by the country's largest coal gasification plant that converts high-ash coal to synthetic gas, said in a statement.
"Guided by its production ramp up plan and supported by the healthy demand for steel in market, Jindal Steel and Power Limited (JSPL) has re-started its 1.8 MnT pa Direct Reduced Iron (DRI) plant at the 6 MnT pa Integrated Steel Complex at Angul (Odisha). Through DRI route, the company is targeting production run-rate of 1 MnT of crude steel in FY20, through existing coal linkages and aims to procure the balance requirements for optimum capacity utilisation through e-auctions. The company is aiming to produce 6.5 MnT of Steel in India in FY20" as per press release.
This will increase JSPL's captive pellet consumption and reduce merchant pellet availability in domestic and export market. JSPL produced around 7 MnT pellets in CY18, out of which exports were recorded at 1.61 MnT.
Direct reduced iron (DRI), also called sponge iron, is produced from the direct reduction of iron ore (in the form of lumps or pellets) to iron by a reducing gas or elemental carbon produced from natural gas or coal.
JSPL's Q3 FY19 Performance
JSPL standalone steel production rose 26% Y-o-Y to 1.22 MnT in Q3 FY19 as against 0.97 MnT in Q3 FY18. While standalone steel sales during Q3 FY19 increased to 1.20 MnT, up by 28% Y-o-Y.
The revenues for JSPL standalone reported at INR 6,745 Cr in Q3 FY19 (up by 58% Y-o-Y) supported by higher realisations. Aided by higher efficiency and better product mix strategy against increasing raw material costs, JSPL standalone maintained EBITDA margins of 22%, similar to previous quarter even in a price fall environment.
JSPL Standalone reported EBITDA of INR 1,480 Cr (Up 61% Y-o-Y) and Profit After Tax of INR 177 Cr as compared to a loss of INR 74 Cr in Q3 FY18.
source: SteelMint
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