ArcelorMittal Nippon Steel: Iron Ore Sourcing Up 7% in Jan'20

ArcelorMittal Nippon Steel- an integrated steelmaker with steelmaking capacity of 10 MnT p.a. recorded rise in iron ore sourcing for the month of Jan'20 at 1.22 MnT, up 7% as against 1.14 MnT in Dec'19.

Iron ore procurement from NMDC (C.G.) up marginally for the month

ArcelorMittal Nippon steel procured 0.69 MnT of iron ore in Jan'20 from NMDC's Bailadila mines (Chhattisgarh) via slurry pipeline, against Dec'19 procurement by the company at 0.68 MnT.

NMDC Ltd increased iron ore prices from its mines twice in the month of Jan'20. The miner increased iron ore fines prices by INR 550/MT, Baila lump by INR 600/MT, DR-CLO price hike was by INR 700/MT and ROM by INR 570/MT.

Sourcing from Odisha merchant mines up 10% in Jan'20

ArcelorMittal Nippon steel sourced 0.49 MnT iron ore during Jan'20 from Odisha's merchant mines, increase by 10% against Dec'19 at 0.45 MnT. Sourcing from OMC picked up sharply to 38,656 MT for the month as compared to 12,930 MT a month ago (in Dec'19).

Out of the total iron ore sourced from Odisha merchant mines in Jan'20, the largest share was contributed by KJS Ahluwalia at 0.24 MnT (up two folds M-o-M).

Sourcing from Serajuddin mines was reduced by 39% to 0.17 MnT in Jan'20 as compared to 0.28 MnT in Dec'19.

Sourcing from RP Sao and Indrani Patnaik increased to 48,755 MT and 21,558 MT respectively for the month as compared to being nil a month before.

Sourcing from Rungta mines recorded at 13,847 MT, down 44% M-o-M.

Few major miners have already made aggressive bookings in last month's as steel mills were actively restocking material ahead Mar'20 lease expiry. Also few mines are heard to have achieved EC limits for this fiscal.

ArcelorMittal Nippon Steel iron ore imports marked nil in Jan'20

ArcelorMittal Nippon Steel iron ore and pellet imports continue to remain nil for the month of Jan'20. The imports were last seen in Dec'18 at 0.15 MnT.

The imports have been on the lower side amid high global prices. Monthly average global iron ore fines (Fe 62%) prices in Jan'20 witnessed at USD 92.63/MT, CFR China as against USD 91.43/MT, CFR China in Dec'19.

ArcelorMittal Nippon Steel Iron ore Sourcing in Jan'20 & Dec'19

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

ArcelorMittal 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.