Godawari Power and Ispat Ltd (GPIL) in Chhattisgarh have informed BSE regarding suspension of operations in Steel Melting Shop, Captive Bio Mass/ Coal based Power plant, Steel Rolling Mill & Wire Drawing Units.
The operation at Company’s Steel Melting Shop (SMS Plant), Rolling Mill, Wire Drawing Division and Captive Bio Mass Power & Thermal Power Plants have been temporarily suspended till further notice due to unfavorable market conditions.
The Company’s Captive Iron Ore Mines, Iron Ore Pelletisation Plants, Sponge Iron Plant, Captive WHRB Power Plant and Ferro Alloys Units continue to function normal.
The plant’s financial implication is not determinable at the present situation. The Company is monitoring the market conditions and in due course it will likewise intimate the exchange about the restart of operations.
How will it impact market
GPIL is one of the largest finished long steel makers in eastern India. Company produced 491,652 MT sponge iron, 227,581 MT billets and 156,086 MT of rounds and HB wire in FY16 (as reported in company’s annual report).
Out of total sponge iron and billet produced in FY16, around 50-55% was sold in merchant market and rest was used for captive consumption.
This may lead to increase supply of sponge iron and pellet in merchant market, whereas supply of billets and finished steel will come down.
GPIL production & sales in FY16
| Products | Production in FY16 (In MT) | Sales in FY16 (In MT) |
| Iron ore Mining | 657,328 | – |
| Iron ore Pellet | 1,580,850 | 948,111 |
| Sponge Iron | 491,652 | 271,627 |
| Steel Billet | 227,581 | 111,688 |
| MS Round | 78,213 | 16,853 |
| HB Wire | 77,873 | 78,894 |
| Ferro Alloys | 13,700 | 10,370 |
Source: GPIL FY16 Annul Report
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