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AM/NS India: Iron ore sourcing up slightly in Dec'20

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Fines/Lumps

BigMint Bureau

838 Reads

25 Jan 2021, 16:11 IST

AM/NS India: Iron ore sourcing up slightly in Dec'20

ArcelorMittal Nippon Steel India (AM/NS India)- an Indian steel major, has recorded iron ore and pellet sourcing of 1.22 mn t in Dec'20, up marginally against 1.20 mn t in Nov'20. The figure includes AM/NS captive iron ore procurement. Apart from company's domestic iron ore sourcing, the company also imported iron ore.

Company's crude steel production was recorded at 0.61 mn t in Nov'20, largely stable against 0.63 mn t in Oct'20.

Iron ore procurement from NMDC (Chhattisgarh) up by 5% in December
Steelmaker procured 714,000 t of iron ore in Dec'20 from NMDC's Bailadila mines (Chhattisgarh) via a slurry pipeline, against 680,000 t in Nov'20.

Sourcing from Odisha merchant mines increased 53% in Dec'20
The company sourced 98,234 t iron ore from Odisha's merchant mines, up 53% m-o-m against Nov. sourcing at 64,378 t.

Sourcing from OMC increased sharply to 7,574 t for the month as compared to 2,412 t in Nov'20.

Out of the total iron ore sourced from Odisha merchant mines in Dec'20, the largest share was contributed by Rungta mines at 42,369 t, followed by JSW Steel at 34,997 t.

Imports fall by 32% m-o-m

The company has reported iron ore import volumes at 64,625 t in Dec'20 from Australia. The company recorded nil pellet import for the month, according to customs data maintained with SteelMint. High global prices may continue to keep imports on lower side. The average iron ore (Fe 62%) fines price increased to $155/t, CNF China in Dec'20 as against $124/t, CNF China in Nov'20.

AM/NS iron ore & pellet sourcing Dec'20 v/s Nov'20

Quantity in t
Source: SteelMint
Includes sourcing from Odisha, Chhattisgarh, imports

Outlook: AM/NS India likely to resume mining operations at Sagasahi block shortly - AM/NS India received forest clearances for resuming mining operations at Ghoraburhani Sagasahi iron ore mine block in Dec'20 and the lease execution is expected to be done in Jan'21. The mine has EC limit of 7.16 mn t pa. This may lower its iron ore sourcing from merchant market.