Bhushan Power & Steel Iron Ore Sourcing Surge in Oct'18
...
Bhushan Power & Steel - a major integrated steel maker with a capacity of 3.5 MnT has recorded iron ore sourcing at 0.33 MnT in Oct'18. The sourcing witnessed rise of 6% on monthly basis.
In FY'19 (Apr-Oct'18) the company's total sourcing witnessed at 2.05 MnT, with largest supplier being OMC at 0.59 MnT.
Sourcing from Rungta mines increased 87% in Oct'18
Bhushan Steel's iron ore sourcing from Rungta mines recorded at 0.12 MnT for the month, up 87% on monthly basis as against 0.06 MnT in Sep'18.
Serajuddin mines supplied 0.08 MnT in Oct'18, down 31% M-o-M as against being 0.12 MnT in last month, followed by Essel mining at 0.07 MnT (down 21% on monthly basis).
State owned miner- OMC mines recorded sharp increase in supplies at 0.06 MnT (up 34% M-o-M) as against being 0.05 MnT a month before.
Bhushan Power and Steel's iron ore sourcing: Oct'18 v/s Sep'18
| Seller | October'18 | September'18 |
| Rungta Mines | 120,555 | 64,395 |
| Serajuddin | 80,808 | 117,341 |
| Essel Mining | 69,060 | 86,961 |
| OMC | 63,600 | 47,593 |
| Grand Total | 334,023 | 316,291 |
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. Tata Steel alleged that lenders of Bhushan power and Steel Ltd. have violated NCLAT orders by permitting JSW Steel to revise bids post the deadline. However, in the voting held in Oct'18, around 90% of lenders of Bhushan power and Steel voted in favour of JSW Steel. However, the final hearing on the case remains pending on 3rd Dec.
