Bhushan Steel: Iron Ore & Pellet Sourcing Down 8% in Nov'18

Bhushan Steel - a major integrated steel maker with a capacity of 5.6 MnT has recorded iron ore and pellet sourcing at 0.39 MnT in Nov'18. The sourcing dropped on monthly basis as against 0.42 MnT in Oct'18.

The total iron ore procurement in Nov'18 dropped 9% on monthly basis to 0.38 MnT as against 0.41 MnT in Oct'18.

Iron ore procurement from OMC up significantly M-o-M

State owned miner- OMC stood largest supplier of iron ore to the Bhushan Steel at 0.15 MnT in Nov'18, up 45% M-o-M as against 0.10 MnT in Oct'18.

Tata Steel supplied 0.09 MnT of iron ore in Nov'18, up 83% as against 0.05 MnT a month ago.

Serajuddin and Indrani Patnaik supplies to Bhushan Steel recorded at 0.05 (down 63% M-o-M) and 0.04 MnT (down 44% on monthly basis) respectively.

Sourcing from RP Sao and KJS Ahluwalia increased to 0.02 MnT(up 44% M-o-M) and 0.015 MnT ( up two folds on monthly basis) respectively.

Bhushan Steel procured 2 rakes of pellets in Nov'18

Bhushan Steel pellet procurement in Nov'18 recorded stable on monthly basis at 2 rakes (7,700 MT).

Bhushan Steel Iron Ore Sourcing

Source: SteelMint Research
Quantity in MT
Provisional Data

Bhushan Steel was one of the companies underwent Bankruptcy proceedings. In May'18, NCLT (National Company Law Tribunal) finally gave its approval to Tata Steel's resolution plan of acquiring debt-ridden Bhushan Steel under the Insolvency and Bankruptcy Code (IBC). Bhushan Steel has received necessary approval to Change its name to Tata Steel BSL following its takeover by Tata Steel. Also, Tata steel targets 4 MnT per yr production capacity at Bhushan Steel by Mar'19.

Tata steel is planning to expand Bhushan steel capacity from 5.6 MnT to 8.3 MnT. Also, it is planning to enhance production at its captive iron ore mines around Jamshedpur and Kalinganagar which will help in raw material availability to ramp up capacity at Bhushan Steel.