Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Vedanta Limited reported a fall in EBITDA of 22.75pc from Rs51.89bn($708.11mn) from in the prior-year period to Rs40.08bn ($546.94mn) in its Q1 2021 (April-June) result declared on Oct 3. The company reported profit after taxes of Rs15.23bn($207.83mn), down by 21.65pc from Rs19.44bn($265.28mn) in the prior-year period. Vedanta’s revenue dropped by 25pc to Rs159.73bn($2.18bn). 


Vedanta’s steel division exported billets used for rolling TMT rebars and other structural steel products to China during the lockdown. 


Zinc India metal in concentrate production at 202,000mt with the cost of production (COP) at $1,019/mt. Production declined by 5pc from 213,000mt in April-June quarter 2019, mainly since the output in April registered a steep decline. 

Zinc India reported 250,000mt of metal production in Q4 2020, up by 9pc from the Q1 2021. 

Zinc International metal production was at 38,000mt in the April-June quarter, down by 36pc from the prior-year period and by 33pc from the preceding quarter. The company’s Skorpion Zinc went into care-and-maintenance, impacting production. The COVID-19 pandemic also played a role. 

Gamsberg production was at 25,000mt with COP at $1,327/mt in Q1 2021, up from 23,000mt in the prior-year period. 



Vedanta’s aluminium production at Lanjigarh dropped by 7pc drop to 476,000mt in Q1FY2021 from the prior year quarter and dropped by 1pc from Q4FY2020. 


In Q1, Aluminium COP declined to $1,268/mt, down by 28pc from the prior year quarter and down by 13pc from the prior quarter. The company focused on ingot production to cater to the dynamic market requirements. During the quarter, the company launched Project Vijay Path (Road to victory) to push manufacturing and commercial excellence. 


Iron ore & ESL

Iron ore Karnataka sales in Q1 were reported at 0.4mn mt, down by 64pc from 1.2mn mt in the prior year quarter and 74pc down from 1.6mn mt in Q4.

In Q1, ESL Steels reported 267,000mt of production, down by 17pc from 323,000mt from the prior year quarter and down by 16pc from Q4. ESL sales were 305,000mt, up by 12pc from the prior year and flat from the prior quarter with a margin of $44/mt, down 58pc from the prior year quarter and 65pc from Q4 due to the COVID-lockdowns, subdued macroeconomic factors and lower demand in the market. 

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