Essar Steel – an integrated steelmaker with steel making capacity of 10 MnT p.a. recorded an increase its iron ore & pellet sourcing. The sourcing witnessed at 1.33 MnT in May’18, up 45% M-o-M as against 0.92 MnT in Apr’18.
The Y-o-Y iron ore & pellet sourcing also recorded increase of 21% in May’18 as against 1.10 MnT in May’17.
Iron ore procurement from NMDC (C.G.) increased sharply 52% M-o-M
Essar Steel procured 0.85 MnT of iron ore in May’18 from NMDC’s Bailadila mines in Chhattisgarh via slurry pipeline, stood 52% up as against 0.56 MnT in Apr’18.On yearly basis it recorded increase of 33% in May’18 compared to 0.64 MnT in May’17.
Sourcing from Odisha merchant mines increased 9% in May’18
Essar Steel sourced 0.39 MnT iron ore in May’18 from Odisha’s merchant mines, up 9% M-o-M compared to 0.36 MnT in Apr’18. Out of the total iron ore sourced from Odisha in May’18, largest share was contributed by KJS Ahluwalia at 0.21 MnT (up 59% M-o-M), followed by Indrani patnaik at 0.13 MnT . Other major supplier were Serajuddin at 0.02 MnT (down 83% M-o-M) and Rungta mines at 0.02 MnT( down 22% on monthly basis).
Essar Steel recorded Pellets imports in May’18
Essar Steel witnessed 0.09 imports in May’18, as against being no bookings reported l in Apr’18.
Essar Steel’s iron ore & pellet Sourcing
| Seller | May’18 | April’18 | M-o-M (%) | May’17 | Y-o-Y (%) |
| NMDC | 851,000 | 560,000 | 52% | 639,800 | 33% |
| KJS Ahluwalia | 214,211 | 134,804 | 59% | 179,683 | 19% |
| Indrani Patnaik | 133,160 | 66,075 | 102% | 56,540 | 136% |
| Import | 90,000 | – | 100% | 112,620 | -20% |
| Serajuddin | 21,880 | 128,931 | -83% | 46,288 | -53% |
| Rungta Mines | 20,994 | 26,923 | -22% | – | 100% |
| Kaypee Enterprises | 2,128 | 2,956 | -28% | 16,299 | -87% |
| Others | – | – | – | 47,528 | -100% |
| Grand Total | 1,333,374 | 919,689 | 45% | 1,098,758 | 21% |
Qty in MT
Provisional data
Source: SteelMint Research, Customs, Odisha govt.
Debt laden Essar Steel is currently undergoing insolvency resolution process.
In the first round of bidding, Arcelor Mittal and Japan’s Nippon Steel had jointly bid to acquire Essar Steel.
The bids submitted by Numetal and Arcelor Mittal in first round in Feb’18 were rejected by the CoC (Committee of Creditors) and RP citing eligibility on technical grounds.
In the second round of bidding process held on 2nd Apr’18 , Arcelor Mittal along with Nippon of Japan, Anil Agarwal’s Vedanta and Numetal along with JSW Steel had put in their bids.
Later, National Company Law Tribunal (NCLT) directed the first round of bids to be considered and not the second round. Besides, Essar Steel’s CoC cited Arcelor Mittal and Numetal, that their bids submitted in first round will be considered only if all their debts are cleared in 7 days. Arcelor Mittal complied to the orders, and has successfully cleared its dues within the stipulated time.
On 22 May’18, the tribunal heard submissions from Numetal and ArcelorMittal, who are the two prominent bidders for Essar Steel. While Arcelor Mittal sticked to its stance that the company’s bid in first round of bidding should be considered and Numetal pleaded for opening of second round of bidding.
However, the NCLAT (National Company Law Appellate Tribunal) has put on hold the resolution process for Essar Steel and the next hearing on the case is scheduled on 23 Jul’18 after the summer break from 1 Jun to 1 Jul’18.
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