The rise in Covid cases is a cause of concern but production volume at steel PSU Rashtriya Ispat Nigam Limited’s (RINL’s) Vizag Steel Plant (VSP) is normal at present. It has not effected a cut in output on account of liquid medical oxygen diversion either.
A source added that production at RINL has not been hit so far because it has not experienced any issues with rising infections up till now. Also, with full lockdown not implemented in many locations, transportation has not been hit. For instance, Andhra Pradesh is undergoing partial lockdown from 12 noon till 6 am.
Oxygen diversion
RINL has been supplying liquid oxygen towards healthcare from its reserves of 4,000-5,000 tonnes, which is kept aside in case of exigencies like a power failure at the oxygen plant. In such circumstances, the plant can fall back on reserves to continue uninterrupted with the production process. It has a capacity to produce 100 tonnes (t) of oxygen per day.
The cumulative dispatches of liquid medical oxygen (LMO) from VSP touched 4,650 tonnes since 13 Apr’21, crossing 13,500t since the onset of the pandemic. A volume of 156t of LMO has been dispatched to various destinations in Andhra Pradesh and 22t to Karnataka in the last 24 hours.
Also, a 1,000-bed initiative is under way within the plant premises to meet future medical exigencies.
Capacity utilisation
RINL, at present, is operating at upwards of 95% capacity, producing 18,000-19,000 tonnes per day (tpd) of hot metal. Its three blast furnaces have a peak rated capacity of 7.5 lakh tonnes per annum.
Speaking of the capacity utilisation, the source said, “Even if we produce 20,000 tonnes per day, we need a market for it too.”
RINL’s liquid steel production in Apr’21 was at 4.91 lakh tonnes against 5.65 lakh tonnes in Mar’21.
Sales
Total sales in April were at 4.03 lakh tonnes in which the share of exports was 1.47 lakh tonnes. Mar’21 sales were sharply high at 7.11 lakh tonnes, when the domestic market was very buoyant. Mar’21 export sales were at 1.5 lakh tonnes.
Speaking of the demand scenario in Apr’21, the source said, “The domestic market has been average – neither very bad, nor very good,” adding, “We don’t see a pronounced export focus at this juncture although some consignments have been dispatched.”
Explaining the April demand status, the source said, “March is always good in terms of sales since companies have targets to meet. There is always a lull in April after the achievement of financial targets. From the buyers’ perspective, they too need to exhaust the inventory bought in March.”
RINL has set a sales target of 5 lakh tonnes in May’21.
Inventory
Consequently, RINL’s inventory at the beginning of April was marginally higher at 2.4 lakh tonnes against the previous month’s 2 lakh tonnes.
Madhumita Mookerji
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