Bhushan Power & Steel - Iron Ore Sourcing Drops 12% in Sep'18

Bhushan Power & Steel - a major integrated steel maker with a capacity of 3.5 MnT has recorded iron ore sourcing at 0.32 MnT in Sep'18. The sourcing witnessed decline of 12% as against sourcing in Aug'18 at 0.36 MnT.

In FY'19 (Apr-Sep'18) the company's total sourcing witnessed at 1.72 MnT, with largest supplier being OMC at 0.52 MnT.

Sourcing from Rungta mines increased more than two folds in Sep'18

Bhushan Steel's iron ore sourcing from Rungta mines recorded at 0.06 MnT for the month, up more than twice on monthly basis as against 0.03 MnT in Aug'18.

For the month of Sep'18, Serajuddin mines stood the largest supplier at 0.12 MnT, down 19% M-o-M as against being 0.14 MnT in last month, followed by Essel mining at 0.09 MnT (up 3% on monthly basis).

State owned miner- OMC mines recorded sharp decline in Sep'18 supplies at 0.05 MnT (down 55% M-o-M) as against being 0.11 MnT a month before.

Bhushan Power and Steel's iron ore sourcing: Sep'18 v/s Aug'18

Source: SteelMint Research
Quantity in MT
Provisional Data

Bhushan Power and Steel is one of the companies undergoing bankruptcy proceedings.

The Bhushan Power and Steel auction initially received interest from 12 bidders, out of which JSW and Tata made to the final stage with former securing higher bids. UK based Liberty house submitted the bids post the deadline of 8th Feb, which was initially rejected by CoC (committee of creditors) but later accepted. Tata Steel emerged the highest bidder in first round of bidding. However, on 27 Jul'18, NCLAT (National Company Law Appellate Tribunal) directed Bhushan Power's Committee of Creditors (CoC) to go for rebids after the other firms expressed wish to increase their offers.

JSW Steel Ltd, Tata Steel Ltd and Liberty took part in the second round of bidding held on 13th Aug'18.

Later, the lenders submitted revised bids. However, lenders of Bhushan power and Steel are to vote on bids submitted. The voting will be between 15th Oct to 17th Oct.