ArcelorMittal Nippon Steel: Iron Ore Sourcing Up 15% in Feb'20
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ArcelorMittal Nippon Steel (AM/NS)- an integrated steelmaker with steelmaking capacity of 10 MnT p.a. recorded rise in iron ore sourcing for the month of Feb'20 at 1.40 MnT, up 15% as against 1.22 MnT in Jan'20.
Iron ore procurement from NMDC (C.G.) up 8% for the month
Steel maker procured 0.75 MnT of iron ore in Feb'20 from NMDC's Bailadila mines (Chhattisgarh) via slurry pipeline, against Jan'20 procurement by the company at 0.69 MnT. NMDC reduced iron ore prices as on 14th Mar'20. Prices of Baila fines and lump have been reduced by INR 50/MT and DR CLO by INR 60/MT.
Sourcing from Odisha merchant mines up 29% in Feb'20
AM/NS sourced 0.64 MnT iron ore during Feb'20 from Odisha's merchant mines, increase by 29% against Jan'20 at 0.49 MnT. Sourcing from OMC dropped sharply to 20,488 MT for the month as compared to 38,656 MT a month ago (in Jan'20).
Out of the total iron ore sourced from Odisha merchant mines in Feb'20, the largest share was contributed by Serajuddin at 0.25 MnT (up two folds M-o-M). The miner has reduced offers by INR 1,000/MT in a week's time.
Procurement from KJS Ahluwali reduced by 22% to 0.19 MnT in Feb'20 as compared to 0.24 MnT in Jan'20.
AM/NS iron ore imports marked nil in Jan'20
The iron ore and pellet imports by the miner continue to remain nil for the month of Feb'20. The imports were last seen in Dec'18 at 0.15 MnT.
Monthly average global iron ore fines (Fe 62%) price recorded at USD 86.5/MT, CFR China in Feb'20.
AM/NS Iron ore Sourcing in Feb'20 & Jan'20
| Seller | Feb-20 | Jan-20 |
| NMDC | 746,050 | 691,100 |
| Serajuddin | 254,847 | 170,387 |
| KJS Ahluwalia | 186,676 | 238,036 |
| Indrani Patnaik | 73,264 | 21,558 |
| KN Ram | 53,684 | - |
| RP Sao | 33,799 | 48,755 |
| Rungta Mines | 29,938 | 13,847 |
| OMC | 20,488 | 38,656 |
| MG Mohanty | 2,993 | - |
| MGM Minerals | 2,570 | - |
| Total | 1,404,309 | 1,222,339 |
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 have decided to ramp up the capacity to around 12 MnT to 15 MnT per annum.
ArcelorMittal Nippon Steel India (AM/NS India) said that it has completed the acquisition of Bhander Power Plant in Hazira, Gujarat from Edelweiss Asset Reconstruction Company.
Bhander, a natural gas-based thermal plant with an installed capacity of 500 MW, will remain captive to AM/NS India's steel manufacturing operations at Hazira.
