India: Vedanta Reports 9% Fall in Pig Iron Production

Vedanta Resource's (erstwhile Sesa Goa) pig iron production has dropped by 9% in the last financial year (FY18) starting from April'17 and ending on March'18

Vedanta resources has reported a production of 646,000 MT pig iron in FY18 against production of 708,000 MT in FY17. Vedanta Resources is the largest merchant pig iron producer (including steel and foundry grade) in India followed by state owned Neelachal Ispat (NINL).

Company attributes falling production of pig iron to lower availability of met coke and strike by local contractors in first quarter of FY18.

Vedanta Resources, one of the India's largest pig iron producer the company known for prime grade manufacturer for both steel & foundry grade materials and supply it largely to West, South & North regions in domestic market and also exports aggressively.

Vedanta's Pig Iron Production to Remain Low

Vedanta's pig iron production is likely to fall in FY19 expected Iron ore crisis in near future following Supreme Court ordered cancellation of mining leases in Goa.

Vedanta's Goan Iron Ore mines which have a total production capacity of 5.5 million tonnes per annum and has been a primary source of raw material for the company would also cease operations.

Statistics

1. According to SteelMint stats, the bulk pig Iron exports by Vedanta Resources for FY18 was around at 165,900 MT, higher by 41% as compared to 117,350 MT in FY17

2. Out of 165,900 MT Pig iron exports, 40% was shipped to Taiwan, 20% to Indonesia and 18% to Bangladesh

3. India's total bulk pig iron exports was recorded at 446,250 MT in FY18 which was 336,290 MT in FY17

4. MMTC exported around 195,000 MT and remained the largest exporter from India

5. Indian saleble pig iron production stood at 9.26 in CY17 as against 9.44 in CY16, as per JPC.