Small Raipur-area steelmakers sell waste-heat power for higher returns
Small steel producers in central India, especially around Raipur, have found it's actually more profitable to sell electricity than make steel right now.
Thanks to a spike in demand and higher spot market prices, companies like Mahendra Sponge and Power Ltd and SKS Ispat and Power are selling power generated from their own waste heat, basically turning waste heat from sponge iron production into extra cash.
Material costs rise, spot electricity surges
Rising costs for raw materials (like a nearly 30% jump in iron ore pellet prices and expensive coal) have squeezed profits for these smaller players.
At the same time, spot electricity prices have more than doubled over the past year due to coal shortages and growing demand.
So while big companies like JSW Steel and Tata Steel keep expanding, smaller producers are adapting fast, focusing on what pays best right now: selling power.