Bhushan Steel’s Iron Ore Sourcing Drops Sharply in Jan’18

With Serajuddin and MESCO mines remaining closed following Supreme Court order on illegal mining, Bhushan Steel’s sourcing declined 36% M-o-M in Jan’18.

Bhushan Steel – a major integrated steel maker has recorded a decline in its monthly iron ore & pellet sourcing in Jan’18. The iron ore and pellet sourcing by the company has witnessed decline of 26% M-o-M to 0.33 MnT in Jan’18 as against 0.44 MnT in Dec’17.

Bhushan Steel’s Iron Ore Procurement declined 36% in Jan’18 –

Iron ore procurement by Bhushan Steel decreased by 36% M-o-M to 0.27 MnT in Jan’18 against 0.42 MnT in Dec’17. Out of the total procurement, OMC stood the highest supplier to Bhushan Steel with 0.09 MnT contributing 34% of total sourcing by the company, followed by Indrani Patnaik at 0.08 MnT and KJS Ahluwalia at 0.04 MnT. Procurement from Rungta Mines decreased by 45% in Jan’18 to 0.02 MnT.

Procurement from Serajuddin Mine in Jan’18 remained nil. This was due to closure of mines owing to failure of penalty payments relating illegal mining activities till the dead line of 31st Dec’17, according to judgment issued by Supreme court of India. It is to be noted that Bhushan Steel stood the 2nd largest iron ore buyer from Serajuddin Mines in CY’17 with total purchase quantity of 1.59 MnT.

Bhushan Steel’s pellet procurement from JSPL increased to almost thrice in Jan’18:

JSPL (Jindal Steel and Power) continued to supply pellets to Bhushan Steel. Its pellet sourcing increased to 15 rakes in Jan’18 against 6 rakes in Dec’17.

Bhushan Steel’s iron ore & pellet sourcing: Jan’18 Vs Dec’17

Source: SteelMint Research
Quantity in MT
Provisional Data