Godawari Power and Ispat’s (GPIL) iron ore pellet production surged by 43pc to 630,600mt in Q4 (January-March) from the prior year and rose 16pc compared to Q3.
Company’s iron ore pellet sales recorded a jump of 53pc to 442,398mt in Q4 over last year’s quarter and grew 23pc compared to previous quarter.
GPIL’s sales grew on the back of healthy pellet exports to China and Malaysia.
In FY21, company’s pellet production was up by 13pc to 2.25mn mt compared to prior year and sales volume up by 18pc to 1.6mn mt.
The company reported sponge iron production at 120,056mt in Q4, up by 4pc compared to prior-year and sales surged by 55pc to 22,780mt. Company has planned to increase sponge iron capacity from 0.49mn mt to 0.59mn mt in FY22. Thereafter, sponge iron will be fully consumed for its billet units and will not be sold in the market.
The company’s billet production fell by 4pc to 93,105mt in Q4 compared to prior year and sales fell by 26pc to 42,682mt. Company announced capex plans to increase billet capacity from 0.4mn mt to 0.7mn mt in FY22.
HB Wire production fell by 43pc to 14,525mt in Q4 compared to prior year while sales fell by 34pc in the same period.
Pellet prices and demand in Indian market have risen due to shortage of iron ore in Odisha. Pellet prices and demand in India have risen due to a short supply of iron ore from Odisha. Pellet prices in India have hit a 10-year high and are trading at around Rs15,000/mt for 64pc/ 63pc Fe. International iron ore prices have climbed to $233/mt, recording multi-year high, however, prices have softened from the high levels and is now at around $200/mt.