Tata Sponge Ltd, India’s top ten sponge producer with an annual capacity of 390,000 MT, has reported a sharp decline in profits in Q1 FY16.
The company’s net profit for the quarter has plunged almost 84% to INR 7.09 crore when compared with INR 44.28 crore in the corresponding quarter a year ago. Total income has also declined by over 30% from INR 141.94 crore to INR 203.12 crore.
Indian steel industry has under-performed in first quarter of FY16 against same period during previous financial year. The reason behind low performance are declining steel prices in global market and rising steel import to India.
Indian steel prices will remain under pressure for next few months due to seasonal slowdown. However, with iron ore production increasing in the country, steelmakers will benefit but impact will be noticeable in third quarter.
How Indian Steel Performed in Q1 FY15 Vs Q1 FY16
|
Commodity |
Delivery |
Size/Grade |
Unit |
Q1 FY15 |
Q1 FY16 |
% Change |
Remarks |
|
Prices |
|||||||
|
Iron Ore |
NMDC (Chhattisgarh) |
Lumps, 6-40mm, 65% |
INR/MT |
4,470 |
3,050 |
-32 |
Excluding Royalty |
|
Iron Ore |
NMDC (Chhattisgarh) |
Fines, -10mm, 64% |
INR/MT |
2,990 |
1,960 |
-34 |
Excluding Royalty |
|
Iron Ore |
CIF,China |
Fines, 62% |
USD/MT |
105 |
58 |
-45 |
|
|
Pellets |
Ex- Barbil |
6-20mm,63% |
INR/MT |
7,350 |
4,750 |
-35 |
Basic Prices, Loaded to Wagons |
|
Coking Coal |
FOB Australia |
Premimum HCC |
USD/MT |
113 |
88 |
-22 |
|
|
Scrap |
Ex-Mumbai |
HMS 80:20 |
INR/MT |
25,900 |
20,700 |
-20 |
Basic Prices, Excise and VAT Extra |
|
Scrap |
CIF, Mumbai |
HMS 80:20 (Europe) |
USD/MT |
385 |
275 |
-29 |
|
|
Pig iron |
Ex-Durgapur |
Steel Grade |
INR/MT |
25,250 |
18,400 |
-27 |
Basic Prices, Excise and VAT Extra |
|
Pig iron |
FoB Black Sea |
Steel Grade |
USD/MT |
380 |
258 |
-32 |
|
|
Sponge Iron |
Ex- Raipur |
FeM 80 (+/-1) |
INR/MT |
22,100 |
17,000 |
-23 |
Basic Prices, Excise and VAT Extra |
|
Billet |
Ex- Mumbai |
100*100mm |
INR/MT |
33,300 |
27,800 |
-16 |
Ex- Works, Excise and VAT Extra |
|
Billet |
FOB Black Sea |
125*125mm |
USD/MT |
495 |
365 |
-26 |
|
|
Rebar |
Ex-Mumbai |
12mm |
INR/MT |
39,200 |
30,800 |
-21 |
Ex- Works, Excise and VAT Extra |
|
Wire Rod |
Ex-Raipur |
5.5mm |
INR/MT |
36,000 |
29,700 |
-18 |
Ex- Works, Excise and VAT Extra |
|
HR Coil |
Ex-Mumbai |
2.5mm, IS 2062 |
INR/MT |
43,500 |
35,500 |
-18 |
Incld Excise of 12.5% ; VAT Extra |
|
HR Coil |
CIF India |
2mm, SS 400 (China) |
USD/MT |
550 |
385 |
-30 |
|
|
HR Plates |
Ex- Works |
5-10mm |
INR/MT |
37,500 |
30,500 |
-19 |
Ex- Works, Excise and VAT Extra |
|
CR Coil |
Ex-Mumbai |
0.9mm |
INR/MT |
47,500 |
40,000 |
-16 |
Incld Excise of 12.5% ; VAT Extra |
|
SiMn |
Ex- Raipur |
60/14 |
INR/MT |
54,600 |
46,700 |
-14 |
Ex- Works, Excise and VAT Extra |
|
Production |
|||||||
|
Crude Steel |
India |
|
MnT |
20.53 |
22.5 |
10 |
|
|
Iron Ore |
India |
|
MnT |
36.6 |
38 |
4 |
Provisional Data |
|
Coal |
Coal India Ltd |
|
MnT |
108 |
121 |
12 |
Company Reports |
|
Export |
|||||||
|
Iron Ore |
India |
|
MnT |
1.96 |
0.04 |
-98 |
|
|
Long Steel |
India |
|
MnT |
0.11 |
0.1 |
-7 |
|
|
Flat Steel |
India |
|
MnT |
1.06 |
0.8 |
-25 |
|
|
SiMn |
India |
|
MnT |
0.16 |
0.16 |
0 |
|
|
FeCr |
India |
|
MnT |
0.11 |
0.11 |
0 |
|
|
FeMn |
India |
|
MnT |
0.04 |
0.02 |
-50 |
|
|
Import |
|||||||
|
Iron Ore |
India |
|
MnT |
0.09 |
2.14 |
2,241 |
|
|
Coking Coal |
India |
|
MnT |
10.86 |
11.79 |
9 |
|
|
Non- Coking Coal |
India |
|
MnT |
43.68 |
47 |
8 |
|
|
Scrap |
India |
|
MnT |
1.27 |
1.52 |
20 |
|
|
Long Steel |
India |
|
MnT |
0.11 |
0.19 |
73 |
|
|
Flat Steel |
India |
|
MnT |
1.19 |
1.86 |
56 |
|
MnT – Million Tonnes
Source: SteelMint Research
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