Electrosteel Steels Ltd (ESL) based in Bokaro, eastern India reported significant rise in hot metal production including finished products. The performance boosted after acquisition of 90% share capital by Vedanta Limited during June 2018.
Electrosteel has reported total production for FY19 was 1,199,000 MT, 17% higher Y-o-Y as a result of operational & commercial excellence and restarting of 350 m3 Blast Furnace-3 from August 2018. The plant has current operating capacity is 1.5 MnT pa with a diversified product mix of wire rod, rebar, DI pipe and pig iron.
The production largely improves of finished products rather than Semis i.e. Pig iron & Billet, which fell close to 21% during FY19 on yearly premises. In line Finished products Rebar (TMT bar) output gained by 47% to 4,41,000 MT, Wire rod by 17% to 4,27,000 MT & Ductile Iron (DI) Pipes by 15% to 1,50,000 MT Y-o-Y in FY19.
Electrosteel Ltd is largely dealing with domestic buyers and also exports material to the Nepal & Bangladesh. The last domestic offers of basic grade Pig iron heard at close to INR 27,300/MT & Wire rod (low carbon) at around INR 42,000/MT ex-plant, Bokaro, Jharkhand.
Vedanta Resources
Vedanta Resources earlier known as Sesa Goa Ltd and one of the prime grade pig iron manufacturer in western India has reported increase in pig iron output Y-o-Y in Fiscal year (FY) 2019.
As per reports, production of Pig Iron increased to 686,000 MT in FY19, 6% higher Y-o-Y mainly due to lower metallurgical coke availability in Q1 FY2018 and local contractors’ strike in Q2 FY2018.
However in line with H1 comparison it was flat Y-o-Y to 346,000 MT in FY19 and 2% higher compared to H1 FY19.
Iron ore production and sales figure observe decline – Production of saleable iron ore fell 38% Y-o-Y to 4.4 MnT in FY19 and sales fell 49% Y-o-Y to 3.8 MnT in FY19.
At Goa, production and sales volume were lower compared to previous periods due to mine closure pursuant to the Supreme court judgement dated 7th February 2018 directing mining operations of all companies in Goa to cease with effect from 16th March 2018. We continue to engage with the Government for resumption of mining operations.
At Karnataka, production in H2 FY19 was 1.6 MnT, higher as compared to H2 FY2018 due to increase in annual mining cap to 4.5 MnT. It was lower by 40% as compared to H1 FY2019 due to higher mining cap utilisation in H1 FY2019.
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