Essar Steel’s Pellet Production Records 58% Growth in Q1 FY17

India’s one of the major pellet producer, Essar Steel India Limited (ESIL) has recorded a growth of 58% for pellet production in Q1 FY17.

In Q1 FY17, the pellet maker produced around 2.02 MnT pellets against Q1 2016, which was 1.28 MnT.

Meanwhile, if we compare the same with previous quarter i.e. Q4 FY16, the company’s pellet production has incremented by 4.6% in current quarter.

Essar Steel recently acquired an iron ore block named Ghorhaburhani-Sagasahi block located in Odisha in recent mineral block e-auctions conducted in the month of April’16. The block, with deposits of 99.54 MnT, has been reserved for integrated steel plant as end use.

With the availability of its iron ore mines that were recently acquired, and full production at the Pellet Plant, ESIL is poised to maintain production at high levels.

Essar Steel’s pellet production remained at 5.4 MnT in FY14 and 5.4 MnT in FY15.

Essar Steel sourced 7.3 MnT iron ore in FY16 compared to 5.9 MnT in FY15. As per the increased iron ore sourcing observed in last fiscal, SteelMint anticipates its pellet production must have touched nearly 6.5 MnT in FY16 against 5.4 MnT in FY15.

Essar Steel quarterly pellets production

Source: SteelMint Research