SMEL Raises Alloy Sales on Strong Export Demand

Shyam Metalics and Energy

SMEL raises alloy sales as export demand strengthens and capacity expands. The producer lifted July ferro-alloy sales by 13pc year on year. Meanwhile, average prices dipped versus 2024 on a softer domestic market.

Ferro-alloys gain volume while prices lag

SMEL raises alloy sales to 21,832t in July on higher output. Month-on-month growth reached 30pc from June’s 16,762t. However, the average sales price fell 7.6pc year on year to Rs93,532/t. Prices still improved 3.7pc from June’s Rs90,202/t. As a result, margins likely tracked mix and export realizations. Buyers in overseas markets absorbed volumes despite weaker India demand.

Stainless steel wire becomes a growth lever

SMEL raises alloy sales alongside stainless steel momentum. July stainless sales rose 42pc year on year to 8,102t. They also climbed 43pc from June’s 5,665t on new capacity. Therefore, the stainless wire line should scale quickly. The firm targets ~10,000t in FY25-26 and 20,000t the year after. This supports product diversification and downstream value capture.

SMEL raises alloy sales while navigating pricing headwinds. Capacity additions and technology upgrades underpin volumes. Yet domestic weakness keeps realized prices below 2024 levels. Consequently, export channels remain essential for utilization and cash flow. The company’s disciplined ramp should protect share in ferro-alloys and stainless.

The Metalnomist Commentary

SMEL’s export-led strategy offsets India’s softer demand and stabilizes run-rates. Watch stainless wire ramp speed and price recovery into peak season. Sustained export orders and mix upgrades will determine EBITDA resilience if domestic prices lag.