JSW Steel successfully commissioned new wire rod mill with production capacity of 1.2mn mt at Vijayanagar in Karnataka, the company announced along with Q2 2020-21 results.
Trial runs of production from the new mill are being done and production is expected to stabilize in 1-2 months, as per Davis Index sources. Initially, basic or MS grade wire rod will be made and other grades like EQ will be produced December onwards.
Small and mediums scale wire rods units in India are already facing shortage of high-grade wire rod, according to India’s Steel Wire Manufacturers Association. With the commissioning of this mill, JSW Steel can cover the shortfall to certain extent for special grades of wire rod in domestic market.
The company has an existing wire rod mill with a capacity of 0.6mn mt in Vijayanagar.
The Indian steelmaker had increased wire rod prices by Rs500/mt ($6.75/mt) to at Rs44,000/mt ($594.59/mt) delivered Bangalore, earlier this week.
Another integrated steel mill, Godawari Power and Ispat and Limited (GPIL) based in Raipur, has recently booked large quantity of wire rod to Nepal at $480/mt loaded to wagon, as per sources. Davis Index had reported about GPIL’s first export consignment of MS wire rod to Nepal.
($1=Rs74.05)