Bhushan Steel: Iron Ore Sourcing Drops 15% in Sep'18

Bhushan Steel - a major integrated steel maker with a capacity of 5.6 MnT has recorded iron ore sourcing at 0.44 MnT in Sep'18. The sourcing stood down 15% M-o-M as against 0.51 MnT in Aug'18.

In Q1 FY19 conference call of Tata Steel, the company highlighted that current capacity utilization of Bhushan steel is 3 MnT and company is targeting to achieve 3.5-3.6 MnT this year and heading towards 4 MnT.

Iron ore procurement from Tata Steel up significantly M-o-M

Bhushan Steel has increased iron ore sourcing from Tata Steel sharply in Sep'18 to 0.06 MnT as against a month ago. Tata Steel has obtained an approval from the Odisha government to sell iron ore to Bhushan Steel from its captive Khandabandh iron ore mine (8MTPA). Post this, Tata steel depicted increase in supplies to Bhushan steel since last two months.

Indrani Patnaik stood the largest supplier of iron ore at 0.12 MnT, contributing 28% of total sourcing by the company (up 88% M-o-M). Serajuddin marked the second largest supplier at 0.116 MnT, down 40% M-o-M in Sep'18.

State owned miner- OMC recorded decline in supplies to the miner at 0.07 MnT (down 25% on monthly basis).

SN Mohanty and KJS Ahluwalia were recorded significant decline in Sep'18 supplies of iron ore. SN Mohanty supplies 0.02 MnT iron ore (down 61% M-o-M), and KJS Ahluwalia at 0.01 MnT (down 66% on monthly basis).

No Pellet Procurement recorded by Bhushan Steel for Sep'18:

Bhushan steel did not procure pellets for the month of Sep'18 as against 7 rakes of pellet for the month of Aug'18.

Bhushan Steel Iron Ore & Pellet 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).