India: Essar Steel’s Flat Steel Output Up 5% Q-o-Q in Q1 FY18

Essar Steel, one of the leading steel manufacturers of India, has achieved 5% Q-o-Q increase in its flat steel production in Q1 FY18. The steel maker’s flat steel production has been recorded at 1.57 MnT in Q1 FY18 compared to 1.5 MnT in Q4 FY17. Thus on Q-o-Q basis, company’s flat products output has registered an increase of 5%. However on yearly premises (i.e. compared to Q1 FY17) its production has surged by 30%.

The steel maker has achieved a run rate of 83% of capacity. The supplies to OEM segment including auto, white and yellow goods registered a growth of 64% at 0.205 MnT in Q1 FY18 compared to 0.125 MnT in the same period last year. PPGI (Pre Painted Galvanised Iron) production was the highest ever in this quarter, 84,800 MT — up by 8.3% Y-o-Y.

Company’s pellet production has increased 20% Q-o-Q to 2.75 MnT in Q1 FY18.

It is to be noted that Essar Steel has raised its pellet exports in line with rise in pellet production. According to customs data maintained with SteelMint, Essar Steel exported 0.34 MnT pellets in Q1 FY18 against 0.05 MnT in Q1 FY17.

Essar Steel Production details

Source: Essar Steel press release

The company has 10 MnT pa steel making capacity and it achieved 47% Y-o-Y growth in its flat steel production which increased from 3.8 MnT in FY16 to 5.6 MnT in FY17.