JSW steel’s expansion of its Dolvi plant is likely to be completed by September 2020, a representative from the company told Davis Index.
The steel producer plans to double the annual capacity of Dolvi plant from the present 5mn mt. This project costing $2.33bn was initiated in 2017 with a target to complete it by March 2020. The extended monsoon season in India, however, delayed it as many areas on the West coast, where the plant is situated were flooded.
JSW also plans to expand the annual capacity of its plant at Vijaynagar, Karnataka by 1mn mt to 13mn mt. On completion of these planned expansions, JSW will surpass the government owned SAIL to become India’s steel producer with the highest capacity.
In coming years, Indian steel mills expect the infrastructure and industrial sectors to lift demand which had weakened in 2019-2020.
In the quarter ended Dec 2019, JSW’s net profit fell by 88pc from the prior year to Rs.1.87bn ($27mn) as Indian finished steel prices fell in the quarter. Indian HRC steel prices are likely to rise by Rs.2,000-3,000/mt on improved infrastructural steel demand and the possibility of iron ore supply scarcity when mining leases expire.
JSW’s newly acquired Monnet Ispat plant has an annual steel products manufacturing capacity of 1-1.5mn mt. Its pellet sponge iron making capacity is at 4mn mt and the capacity of DRA plant is 50,000mt. The company plans to commission a TMT mill of 0.5mn mt in the near term, according to company’s con-call.