Indian steel producer, Neelachal Ispat Nigam Limited (NINL) will complete construction of its steel melting shop (SMS) by the end of this month, enabling the company to improve sales margins through production of higher value added products, a company official said on Friday, October 12.
He said that completing the SMS and starting production from the unit will enable NINL to convert its own pig iron into billets and thereafter into production of thermo-mechanically treated (TMT) bars which will ensure higher realizations than sales of pig iron as at present.
The completion of the SMS unit is also timely since NINL is notching up highest production of pig iron and a captive SMS will ensure higher captive utilization of pig iron and lower merchant sales of the intermediate, the official added.
NINL produced 190,000 mt of pig iron during July-September 2018, up 81 percent over corresponding quarter of previous fiscal, and a highest ever production achieved in any quarter the official said.