India: ArcelorMittal Nippon Steel (AM/NS) Iron Ore Sourcing Down 33% in Apr'20
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ArcelorMittal Nippon Steel ( AM/NS)- an integrated steelmaker with steel making capacity of 10 MnT p.a. recorded fall in iron ore sourcing for the month of April'20 at 0.78 MnT, down 33% as against 1.17 MnT in Mar'20.
The dispatches fell amid logistic issues and mills curtailing output due to nationwide lockdown. Also Steelmaker has holding sufficient iron ore inventories.
Iron ore procurement from NMDC (C.G.) down 12% for the month
Steelmaker was procured 528,000 MnT of iron ore in Apr'20 from NMDC's Bailadila mines (Chhattisgarh) via slurry pipeline, against Mar'20 at 600,400 MT.
Sourcing from Odisha merchant mines down 61% in Apr'20
AM/NS sourced 223,208 MT iron ore during Apr'20 from Odisha's merchant mines, fall by 61% against Mar'20 sourcing at 574,041 MT.
Sourcing from OMC picked up to 33,024 MT for the month as compared to nil a month ago (in Mar'20).
Out of the total iron ore sourced from Odisha merchant mines in Apr'20, the largest share was contributed by KJS Ahluwalia at 103,987 MT (down 8% M-o-M).
AM/NS iron ore imports marked nil in Apr'20
The iron ore and pellet imports by the miner recorded nil in Apr'20. The imports were last seen in the month of Dec'18 at 0.15 MnT.
AM/NS Iron ore Sourcing in FY'20 & FY'19
| Buyer | April'20 | March'20 |
| NMDC | 528,000 | 600,400 |
| KJS Ahluwalia Group | 103,987 | 113,123 |
| KN Ram | 84,887 | 34,873 |
| OMC | 33,024 | - |
| Rungta Mines | 30,383 | 20,405 |
| RP Sao | 3,951 | 8,015 |
| MGM Minerals | - | 3,737 |
| Serajuddin | - | 340,111 |
| Indrani Patnaik | - | 53,778 |
| Grand Total | 784,231 | 1,174,441 |
Qty in MT
Provisional data
Source: SteelMint Research, Customs, Odisha govt.
ArcelorMittal announced the acquisition of Essar Steel India Limited (ESIL) and simultaneously established a joint venture with Nippon Steel Corporation ('Nippon Steel'), called ArcelorMittal Nippon Steel India Ltd ('AM/NS India'), which will own and operate ESIL. ArcelorMittal holds 60 percent of AM/NS India, with Nippon Steel holding the balance. Also, the new owners of Essar Steel has decided to ramp up the capacity to around 12 MnT to 15 MnT per annum.
