India: AM/NS iron ore sourcing up 8% in July'20

ArcelorMittal Nippon Steel (AM/NS)- an integrated steelmaker with steelmaking capacity of 10 mn t p.a. recorded iron ore sourcing for the month of July'20 at 1.16 mn t, up 8% as against 1.07 mn t in June 20.

On a yearly basis too, sourcing picked up 29% compared to 0.9 mn t in July 20.

Iron ore procurement from NMDC (C.G.) up marginally
Steelmaker procured 679,000 t of iron ore in July'20 from NMDC's Bailadila mines (Chhattisgarh) via a slurry pipeline, against June'20 at 671,200 mn t. Sourcing was affected in June'20 amid hindrance in loading activities in NMDC's Bacheli iron ore mining complex.

Sourcing from Odisha merchant mines up 17% in July'20
AM/NS sourced 434,999 t iron ore from Odisha's merchant mines, increase of 17% m-o-m against June sourcing at 372,164 t.
Sourcing from OMC picked up 73% to 44,965 t for the month as compared to 26,002 t in June 20.

Out of the total iron ore sourced from Odisha merchant mines in July'20, the largest share was contributed by Serajuddin mines at 199,981 t, followed by RP Sao at 71,617 t and KN Ram at 67,404 t.

AM/NS iron ore imports marked nil in July'20
The iron ore and pellet imports by the miner recorded nil for the month. The imports were last seen in the month of Dec'18 at 0.15 MnT. Monthly average global iron ore prices for July'20 assessed at $107/t, CFR China as compared to $103/t, CFR China in June 20.

AM/NS iron ore sourcing July'20 v/s June'20

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

AM/NS inked the Mine Development Cum Production Agreement (MDPA) with the Keonjhar district administration for restarting activity at the Thakurani mine. AMNS had bagged the Thakurani iron ore block formerly held by Kaypee Enterprises at Odisha's online auctions, quoting a premium of 107.55%. The block is endowed with 179.26 mn t of iron ore. It has an approved capacity to mine 5.5 mn t p.a.