Essar Steel: Iron Ore & Pellet Sourcing Up 7% M-o-M in Feb'18

Essar Steel imports recorded at 0.18 MnT in Feb'18 which stood nil for past two months.
Essar Steel - an integrated steelmaker with steel making capacity of 10 MnT p.a. increased its iron ore & pellet sourcing by 7% M-o-M to 1.16 MnT in Feb'18 as against 1.08 MnT in Jan'18.

The Y-o-Y iron ore & pellet sourcing also recorded a rise of 25% in Feb'18 as against 0.92 MnT in Feb'17.

Iron ore procurement from NMDC (C.G.) declined 14% M-o-M -

Essar Steel procured 0.60 MnT of iron ore in Feb'18 from NMDC's Bailadila mines in Chhattisgarh via slurry pipeline, stood 14% down as against 0.70 MnT in Jan'18. However, it witnessed increase of 6% Y-o-Y in Feb'18 compared to 0.56 MnT in Feb'17.

Sourcing from Odisha merchant mines up almost recorded stable on monthly basis -

Essar Steel sourced 0.38 MnT iron ore from Odisha's merchant mines up marginally in Feb'18 compared to 0.39 MnT in Jan'18. Out of the total iron ore sourced from Odisha in Feb'18, largest share was contributed by KJS Ahluwalia at 0.23 MnT(up marginally on monthly basis), followed by Indrani Patnaik at 0.10 MnT (down 23% M-o-M) and Rungta mines at 0.03 MnT( up more than twice M-o-M).

Essar Steel's iron ore sourcing from Serajuddin Mines recorded nil, owing to closure of mines due to inability to pay the penalty amount as directed by SC till the deadline of 31st Dec'17 for illegal mining activities. However, after the hearing in the Supreme Court permitted Serajuddin mines to resume operations

Essar Steel imports recorded at 0.18 MnT -

Essar Steel imports witnessed at 0.18 MnT in Feb'18, which stood nil in Jan'18. Out of 0.18 MnT imports, 0.11 MnT was iron ore, and 0.07 stood pellet, imported from Bahrain.

Essar Steel's iron ore & pellet Sourcing

Qty in MT
Provisional data
Source: SteelMint Research, Customs, Odisha govt.

Debt laden Essar Steel is currently undergoing insolvency resolution process. Arcelor Mittal and Japan's Nippon Steel have jointly bid to acquire Essar Steel.