Godawari Power and Ispat’s (GPIL) iron ore pellet production rises by 22pc to 617,300 in Q2 FY21 (Q2) from the prior year. Sales volume surged by 31pc to 334,701mt in export market and fell by 16pc to 89,793mt in domestic market, according to the company’s operational update.
The company’s sponge iron production increased by 15pc to 152,406mt in Q2 compare to prior-year and surged by 99pc from the previous quarter. Billet production also rose by 27pc to 100,660mt in Q2 compare to prior-year and increased by 78pc from the previous quarter.
| Godawari Power and Ispat’s Q2 production | |||||
|---|---|---|---|---|---|
| Production (mt) | Q2FY21 | Q2FY20 | Y-o-Y | Q1FY21 | Q-o-Q |
| Iron ore Mining | 4,19,657 | 3,07,286 | 37% | 3,21,807 | 30% |
| Iron ore- Pellets-GPIL | 6,17,300 | 5,04,100 | 22% | 4,64,150 | 33% |
| Iron ore- Pellets-ASL | 1,01,354 | 1,90,834 | -47% | 1,85,149 | -45% |
| Sponge Iron | 1,52,406 | 1,32,275 | 15% | 76,396 | 99% |
| Steel Billets | 1,00,660 | 72,290 | 39% | 56,510 | 78% |
Pellet market
Pellet sales shot up by 379pc from the prior quarter in domestic market with increase in sales from the local market and reduced exports. A majority of the company’s pellet production is now sold in the domestic market. The company expects pellet prices in the domestic market to remain firm in the near term owing to higher international iron ore prices and a shortage of ore from Odisha. Pellet prices in India have hit 2 year high and are currently trading at around Rs9,600-9,900/mt.
Internationally iron ore prices rose from around $80/mt in April to $128/mt in September, almost touching a two-year high. Ore prices have now softened from those highs to trade at $117-118/mt cfr China this week.