Essar Steel – an integrated steelmaker with steel making capacity of 10 MnT p.a. increased its iron ore & pellet sourcing by 12% M-o-M to 1.08 MnT in Jan’18 compared to 0.96 MnT in Dec’17.
The Y-o-Y iron ore & pellet sourcing also recorded a rise of 9% in Jan’18 as against 1 MnT in Jan’17.
Iron ore procurement from NMDC (C.G.) increased 5% M-o-M –
Essar Steel procured 0.70 MnT of iron ore in Jan’18 from NMDC’s Bailadila mines in Chhattisgarh via slurry pipeline which stood 5% up as against 0.66 MnT in Dec’17. However it also witnessed an increase of 12% Y-o-Y in Jan’18 compared to 0.63 MnT in Jan’17.
Sourcing from Odisha merchant mines increased by 27% M-o-M –
Essar Steel sourced 0.39 MnT iron ore from Odisha’s merchant mines up by 27% M-o-M in Jan’18 compared to 0.30 MnT in Dec’17. Out of the total iron ore sourced from Odisha in Jan’18, largest share was contributed by KJS Ahluwalia at 0.23 MnT(up 64% M-o-M), followed by Indrani Patnaik at 0.13 MnT (down 12% M-o-M).
Essar Steel’s iron ore sourcing from Serajuddin Mines and MESCO reduced to nil in Jan’18, 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.
Essar steel pellet imports remained nil in Jan’18.
Essar Steel’s iron ore & pellet Sourcing
| Miner | Jan’18 | Dec’17 | M-o-M (%) | Jan’17 | Y-o-Y (%) |
| NMDC | 697,300 | 661,000 | 5% | 625000 | 12% |
| KJS Ahluwalia | 225,609 | 137,184 | 64% | 181442 | 24% |
| Indrani Patnaik | 128,889 | 145,743 | -12% | 19248 | 570% |
| Kaypee Enterprises | 19,027 | – | 100% | 23325 | -18% |
| Rungta Mines | 9,501 | – | 100% | – | 100% |
| MG Mohanty | 1,999 | – | 100% | – | 100% |
| Serajuddin | – | 10,630 | -100% | 123079 | -100% |
| Mid East Integrated Steel | – | 10,060 | -100% | – | – |
| Others | – | – | – | 22969 | -100% |
| Grand Total | 1,082,325 | 964,618 | 12% | 995063 | 9% |
Qty in MT
Provisional data
Source: SteelMint Research, Customs, Odisha govt.
Debt laden Essar Steel is currently under going insolvency resolution process. As per reports, Arcellor Mittal has also bid for the company.
Commenting, Mr. Lakshmi Mittal, Chairman and CEO, ArcelorMittal, said, “Essar provides a compelling opportunity for ArcelorMittal to enter the high growth Indian steel market. The offer submitted on 12 Feb’18 by AMIPL includes a detailed investment plan to address operational issues in Essar’s existing asset base. With our industry expertise and renowned operating prowess, we believe we are uniquely equipped to implement a successful turnaround which would be beneficial to Essar’s stakeholders.”
Leave a Reply