Vedanta Resources (Sesa Goa Limited), one of the major foundry grade pig iron producer in India, has raised its prices after the Supreme Court’s verdict on cancellation of 88 iron ore mines in Goa. This includes Vedanta mines which has total production capacity of 5.5 million tonnes and has been a major source of raw material for its pig iron plant.
According to the Vedanta’s official, “Domestic prices hiked approximately by INR 1,000/MT (USD 15) in last few days on better demand and expected raw material (Iron ore) crisis in near future. Though, on analyzing surge in input cost on outsource Iron ore in near future, pig iron prices have been raised.”
Current offers are reported for Foundry grade (high silicon) at INR 32,500/MT (USD 504) which was hovering at around INR 30,000-30,500/MT (USD 465-473) towards Jan’18 start, on ex-Goa plant basis, excluding 18% GST.
Production rise 20%, Q-o-Q
The company’s report showed production for pig iron during Q3 FY18 (Oct-Dec’17) at 165,000 MT which rose by 20% Q-o-Q as compared with Q2 FY18 (Jul-Sept’17) at 137,000 MT.
Similarly, on yearly premises the production increase by 7% in Q3 FY18 against Q3 FY17 at 154,000 MT.
Export Increase by 12%, Y-o-Y
According to the vessel line-up data compiled by SteelMint, bulk pig iron exports by Vedanta Resources recorded at 132,900 MT in FY18 (Apr-Jan’18) which rose by 12% as against at 117,350 MT in FY17.
In the total exports during FY18, 78% shipment gone to South East Asia and rest being sell to Bangladesh.
Vedanta’s Bulk Pig Iron Exports
| Month | CY 2016 | CY 2017 |
| Jan | – | 20,000 |
| Feb | – | 26,250 |
| Mar | – | 30,100 |
| Apr | – | 25,000 |
| May | – | – |
| Jun | – | 37,000 |
| Jul | 20,000 | 11,000 |
| Aug | 21,000 | – |
| Sep | – | – |
| Oct | – | – |
| Nov | – | 30,000 |
| Dec | – | 29,900 |
| Grand Total | 41,000 | 209,250 |
Qty in MT
Source: SteelMint, Custom
Provisional Data
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