Central India-based steelmaker Sarda Energy & Minerals’ iron ore pellet production rose by 22pc to 193,000mt in Q3 FY21 compared to the prior year period and up by 30pc compared to the previous quarter.
Company’s pellet sales recorded a jump of 92pc to 98,000mt in Q3 over prior year quarter but down by 31pc compared to Q2.
The company said pellet prices are expected to remain firm for the next six months due to supply disruptions of iron ore in Brazil and South Africa. However, a lot will depend on how the international market reacts after the Chinese Lunar New year holidays end in late-Feb.
Sponge iron output dips 4pc
The company’s Sponge iron production dipped 4pc to 81,000mt in Q3 compared to prior year quarter and sales fell by 23pc to 33,000mt. However, production was marginally up by 1pc and sales down by 15pc compared to Q2.
Record billet production
The company said it reached the highest ever billet production in Q3, which increased by 10pc to 53,355mt over prior year quarter and up by 18pc compared to Q2.
Record wire rod production
The company also said that its wire rod production reached record levels, up by 10pc to 43,043mt in Q3 compared to prior year quarter. Its sales volume rose by 9pc to 35,000mt in the same period.
Ferro alloy output up by 6pc
Ferro alloys production was up by 6pc to 33,000mt in Q3 compared to prior year quarter but sales volume decreased by 8pc to 36,000mt.
Company has received environmental clearance for expansion of pellet capacity from 600,000mt to 800,000mt at its Raipur plant and is waiting to receive consent to operate from the state government of Chhattisgarh. Thereafter, it will be able to sell around 600,000mt of pellets in the market.
Sarda Energy & Minerals is an integrated steel producer of long steel products with an iron ore pellet production capacity of 600,000mt, billet at 176,000mt, wire rod at 142,000mt and ferro alloys at 124,000mt.