JSPL to gain from expansion in capacity, better pricing for steel

Blast furnace in Angul from March seen boosting production and improving cash flow

Jindal Steel and Power (JSPL) is set to accrue gains on account of various factors, following an improvement in outlook for steel prices. 

While the higher steel prices will translate to better margins and earnings, capacity expansions in the firm’s steel business will further boost its financials. JSPL’s DRI (direct-reduced iron) plant at Angul, with a capacity of 1.8 million tonnes per annum (mtpa), is expected to start production by mid-March. 

The company will also see its 3.2 mtpa blast furnace achieve 11,000 tonnes per day (tpda) of rated capacity by the end of FY19. While the blast furnace had already stabilised