Tata Steel Long’s sponge iron or DRI output rose to 243,000mt in Q1, which is up 81pc from the prior-year quarter (Q1FY2020) and up 8pc from the prior quarter (Q4FY2020). Sponge iron sales volume increased by 72pc from the prior-year quarter and 5pc from the last quarter.
The company crude steel production and saleable steel volumes in Q1 rose to 172,000mt and 162,000mt, up by 42pc and 39pc, respectively, from the prior-year quarter. The higher percentage increase is due to the low base effect caused by the impact of COVID-19-related restrictions in Q1FY2020.
However, compared to Q4, both crude steel production and rolled product sales dropped by 8pc and 3pc, respectively, in Q1. Steel production fell due to the planned shutdown of blast furnace #2 and the reduced availability of oxygen.
During the quarter, partial lockdown in some states and the shutdown of downstream consuming sectors reduced sales. According to the company’s release, its steel sales fell marginally compared to the industry de-growth of approximately 20pc.