Central India-based integrated steelmaker Godawari Power and Ispat (GPIL) produced 115,240mt billet in Q1 FY2022 (Apr-June), up by 24pc from Q4 FY2021.
Iron ore pellet
Iron ore pellet production dipped by 4pc to 602,850mt in Q1 from Q4, while pellet sales recorded a decline of 12pc at 388,937mt in Q1. The company said, its sales performance was affected due to heavy rainfall in Chhattisgarh.
In the Indian market, iron ore pellet prices and demand were on an uptrend in Q1 due to a shortage of ore in FY2021. Domestic iron ore production declined by 44mn mt in FY2021. Iron ore prices almost doubled in India in the past five months to 10,500/mt for 62pc Fe, Orissa fines. While iron ore pellet prices in India hit a 10 year high and are currently trading at around Rs14,500/mt for 64pc/ 63pc Fe, according to Godwari’s press release.
International iron ore prices have reached a multi-year high of $233/mt and softened to trade at $200/mt, currently. Brazil-based Vale is the only international iron ore producer with a higher production forecast in FY2022.
In Q1, sponge iron production was up by 88pc from the prior year at 143,542mt and up by 20pc compared to Q4. The steelmaker is in the process of increasing sponge iron capacity from 0.49mn mt to 0.59mn mt, the Pollution Control Board (PCB) is likely to give its approval in Q2.
The company’s billet production was up by 24pc at 115,240mt in Q1 compared to the previous quarter, which the company claims was its highest ever production. While sales declined by 20pc to 34,174mt in the same period. The steelmaker is also raising its billet capacity to 0.7mn mt which is expected to be completed by end of the current fiscal.
HB wire production declined by 26pc to 10,730mt in Q1 compared to the previous quarter and sales went up by 3pc to 17,303mt in the same period.
The company’s net sales surged by 67pc to Rs112.62bn ($1.51bn) in Q1 compared to the prior year. The company also achieved its highest ever export turnover of Rs6,390mn in the quarter.