Essar Steel: Iron Ore Sourcing Increases 13% in Nov'19
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Essar Steel - an integrated steelmaker with steel making capacity of 10 MnT p.a. recorded rise in iron ore sourcing for the month of Nov'19 at 1.19 MnT, up 13% as against 1.05 MnT in Oct'19.
Iron ore procurement from NMDC (C.G.) up marginally M-o-M
Essar Steel procured 0.70 MnT of iron ore in Nov'19 from NMDC's Bailadila mines (Chhattisgarh) via slurry pipeline, up slightly against Oct'19 procurement by the company at 0.68 MnT.
The sourcing picked up amid offers dropped by the miner towards mid of Nov'19. Prices of iron ore fines and lumps reduced by INR 100/MT and in DR-CLO price cut by INR 120/MT and ROM by INR 90/MT.
Sourcing from Odisha merchant mines up 25% in Nov'19
Essar Steel sourced 0.46 MnT iron ore in Nov'19 from Odisha's merchant mines, 25% increase against Oct'19 sourcing at 0.37 MnT. Sourcing from OMC increased sharply to 29,769 MT for the month as compared to 10,889 MT a month ago (in Oct'19).
Out of the total iron ore sourced from Odisha merchant mines in Nov'19, largest share was contributed by Serajuddin at 0.33 MnT (up 63% M-o-M).
Sourcing from KJS Ahluwalia and KN Ram recorded at 67,620 MT (down 31%) and 48,174 MT (up 44% M-o-M) respectively.
Essar Steel imports marked nil in Nov'19
Essar Steel's iron ore and pellet imports continues to remain nil for the eleventh consecutive month in Nov'19. The imports were last seen in Dec'18 at 0.15 MnT.
The imports have been on the lower side amid highglobal prices. Monthly average global iron ore fines (Fe 62%) prices in Nov'19 witnessed at USD 84.5/MT, CFR China.
Essar Steel Iron ore Sourcing in Nov'19 & Oct'19
| Buyer | November'19 | October'19 |
| NMDC | 0.70 | 0.68 |
| Serajuddin | 0.33 | 0.20 |
| KJS Ahluwalia | 0.07 | 0.10 |
| KN Ram | 0.05 | 0.03 |
| OMC | 0.03 | 0.01 |
| MGM Minerals | 0.01 | 0.03 |
| Grand Total | 1.19 | 1.05 |
Qty in MnT
Provisional data
Source: SteelMint Research, Customs, Odisha govt.
Arcelor Mittal and Nippon Steel complete Essar Steel acquisition
ArcelorMittal on 17th Nov announced the acquisition of Essar Steel India Limited (ESIL), and simultaneously established a joint venture with Nippon Steel Corporation ('Nippon Steel'), called ArcelorMittal Nippon Steel India Ltd ('AM/NS India'), which will own and operate ESIL. ArcelorMittal holds 60 percent of AM/NS India, with Nippon Steel holding the balance. Also, the new owners of Essar Steel have decided to ramp up the capacity to around 12 MnT to 15 MnT per annum.
