Amidst rising prices by Odisha merchant miners and NMDC (C.G), the steelmaker increased imports in July.
Essar Steel – an integrated steelmaker with steel making capacity of 10 MnT p.a. recorded iron ore imports at 0.29 MnT in July, up more than twice on monthly basis as against being 0.11 MnT in June’18. The miner recorded increased imports for the month amidst increase in prices by odisha miners and NMDC (C.G) in July’18.
Out of the total imports 0.17 MnT stood iron ore from Canada, and remaining 0.12 MnT stood pellets from Bahrain.
Essar Steel recorded decline in total iron ore & pellet sourcing for the month of July’18. The sourcing stood at 1.03 MnT in July’18, fall of 16% M-o-M as against 1.22 MnT in June’18.
The Y-o-Y iron ore & pellet sourcing witnessed marginal increase in July’18 as against 0.98 MnT in July’17.
Iron ore procurement from NMDC (C.G.) dropped 36% M-o-M
Essar Steel procured 0.42 MnT of iron ore in July’18 from NMDC’s Bailadila mines in Chhattisgarh via slurry pipeline, stood 36% down as against 0.66 MnT in June’18. The decline is attributed to price rise by NMDC in Chhattisgarh. The miner increased prices by INR 140-180/MT on 10th July. On yearly basis, the steelmaker depicted 19% decrease in July’18 sourcing as compared to 0.52 MnT in July’17.
Sourcing from Odisha merchant mines dropped amidst increase in prices
Essar Steel sourced 0.32 MnT iron ore in July’18 from Odisha’s merchant mines, 29% down on monthly basis compared to 0.45 MnT in last month. Major miners had announced price hike of INR 300/MT in lump and fines earlier in July’18 following increase in Royalty. Besides, logistics bottlenecks in eastern India further contributed to price rise. Again on 26th July, the Odisha miners raised iron ore fines prices by INR 150/MT. This cumulatively contributed to decline in sourcing by Essar Steel.
Out of the total iron ore sourced from Odisha in July’18, largest share was contributed by KJS Ahluwalia at 0.11 MnT (down 43% M-o-M) followed by Serajuddin at 0.10 MnT (down 38% M-o-M) and Indrani Patnaik at 0.07 MnT (down 19% on monthly basis).
Essar Steel’s sourcing from R.P. Sao witnessed at 0.03 MnT against being nil a month before.
Essar Steel’s iron ore & pellet Sourcing
| Seller | July’18 | June’18 | M-o-M (%) | July’17 | Y-o-Y (%) |
| NMDC | 422,600 | 660,000 | -36% | 520,000 | -19% |
| Import | 289,000 | 110,000 | 163% | 218,310 | 32% |
| KJS Ahluwalia | 111,655 | 197,027 | -43% | 129,354 | -14% |
| Serajuddin | 103,714 | 168,059 | -38% | 28,426 | 265% |
| Indrani Patnaik | 65,077 | 80,386 | -19% | 57,730 | 13% |
| RP Sao | 34,424 | – | 100% | – | 100% |
| Kaypee Enterprises | 3,867 | 4,155 | -7% | 21,313 | -82% |
| MG Mohanty | 2,988 | – | 100% | – | 100% |
| Rungta Mines | – | 4,589 | -100% | – | – |
| Mid East Integrated Steel | – | – | – | 4,997 | -100% |
| Total | 1,033,324 | 1,224,216 | -16% | 980,130 | 5% |
Qty in MT
Provisional data
Source: SteelMint Research, Customs, Odisha govt.
Leave a Reply