Production at Essar Steel Ltd.s integrated steel plant at
Hazira in western Indias Gujarat state will pick up by
December, the company said.
"We will achieve only
about 250,000 tonnes of hot-rolled coil production in November,
but we will be able to gear up our mills for 400,000 tonnes per
month by early December," a senior Essar Steel executive told
AMM sister publication Steel First.
The forecast falls
short of the companys previous estimates.
In October, Essar
Steel said it would be in a position to produce about 400,000
tonnes of hot-rolled coil in November and close to 500,000
tonnes by December.
November was constrained due to reduced availability of iron
ore pellets from the (countrys) east coast, essentially
due to bad weather. Production will be ramped up to the optimum
level in the coming months," an Essar Steel spokesman said.
Production at the
companys 8-million-tonne-per-year pellet plant on the
eastern coast of India, in Andhra Pradesh state, was affected
by a cyclone and seven days of heavy rain, another senior
company executive said.
Essar Steel has a
second 6-million-tonne-per-year pellet plant in Paradip, in
A supply shortage of
natural gas to its Hazira plant was another constraint to
Essar Steel uses gas
for the production of direct-reduced iron (DRI) at Hazira.
The company will use
more gas from its Corex furnaces and cut its reliance on
natural gas being supplied by state-owned firm Gail (India)
Ltd., the second executive said.
plant at Hazira has a production capacity of at least 800,000
tonnes per month of hot-rolled coil. It is the single-largest
flat steel production facility in India.
Essar Steel will
likely divert its increased production to the export market
next month, as the company hadnt been able to honor many
of its earlier export commitments due to the production
shortfall, an industry source said.
hasnt yet begun offering hot-rolled coil in the export
market and will likely do so in the next couple of weeks, the
A version of this
article was first published in AMM sister publication Steel