ArcelorMittal Nippon Steel Iron Ore Sourcing Up 18% in FY'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 fiscal year FY20 at 13.52 MnT, up 18% as against 11.45 MnT in FY'19.
Iron ore procurement from NMDC (C.G.) up 6% for the month
Steelmaker procured 7.49 MnT of iron ore in FY'20 from NMDC's Bailadila mines (Chhattisgarh) via slurry pipeline, against FY'19 procurement by the company at 7.04 MnT.
Sourcing from Odisha merchant mines up 33% in FY '20
AM/NS sourced 5.79 MnT iron ore during FY'20 from Odisha's merchant mines, increased by 33% against FY'19 at 4.36 MnT. Sourcing from OMC picked sharply on a yearly basis to 0.25 MnT for the fiscal FY20 as compared to 0.04 MnT a year ago (in FY'19).
Out of the total iron ore sourced from Odisha merchant mines in FY'20, the largest share was contributed by Serajuddin at 3.16 MnT (up 73% Y-o-Y).
Procurement from KJS Ahluwalia increased by 31% to 1.63 MnT in FY'20 as compared to 1.24 MnT in FY'19.
Odisha's major miners had reduced iron ore prices towards the end of the fiscal. As mines were going to be auctioned who were expiring lease on 31st Mar'20 stimulated all the miners to increase iron ore production. Also, few major steel mills had aggressive bookings ahead of Mar'20 lease expiry.
AM/NS iron ore imports marked nil in FY20
The iron ore and pellet imports by the miner recorded nil in FY'20. The imports were last seen in the month of Dec'18 at 0.15 MnT.
The spot iron ore prices for the year FY'20 increased to USD 95.5/MT, CFR China as compared to USD 71.3/MT, CFR China in FY'19. The year witnessed the highest index price in July'19 at USD 120/MT, CFR China. The prices for the month were hovering five years high levels at USD 126/MT, CFR China towards early July.
AM/NS Iron ore Sourcing in FY'20 & FY'19
| Seller | FY20 | FY19 |
| NMDC | 7.49 | 7.04 |
| Serajuddin | 3.16 | 1.83 |
| KJS Ahluwalia Group | 1.63 | 1.24 |
| Indrani Patnaik | 0.37 | 0.91 |
| KN Ram | 0.26 | 0 |
| OMC | 0.25 | 0.04 |
| MGM Minerals | 0.15 | 0.03 |
| Rungta Mines | 0.12 | 0.08 |
| RP Sao | 0.09 | 0.2 |
| MG Mohanty | 0.01 | 0.01 |
| Essel Mining | 0 | 0.04 |
| Kaypee Enterprises | 0 | 0.02 |
| Grand Total | 13.52 | 11.45 |
Qty in MnT
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.
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.
