Bhushan Steel: Iron Ore & Pellet Sourcing Up 49% Y-o-Y in August

Bhushan Steel – a major integrated steel maker with a capacity of 5.6 MnT has recorded iron ore & pellet sourcing at 0.52 MnT in Aug’18. On yearly basis iron ore and pellet sourcing increased by 49% in Aug’18 as against 0.35MnT in Aug’17.The sourcing stood slightly up on monthly basis as against July’18 sourcing at 0.50 MnT.

In Q1 FY19 conference call of Tata Steel, the company highlighted that current capacity utilization of Bhushan steel is 3 MnT and company is targeting to achieve 3.5-3.6 MnT this year and heading towards 4 MnT.

Iron Ore Procurement from Tata Steel up by eight folds M-o-M

Bhushan Steel has increased sourcing from Tata Steel sharply by more than eight folds on monthly basis to 3,850 MT against 470 MT a month ago. Tata Steel has received approval from the Odisha government to sell iron ore to Bhushan Steel from its captive Khandabandh iron ore mine (8MTPA).

Bhushan Steel’s total iron ore procurement in Aug’18 witnessed at 0.49 MnT, up 2% M-o-M as against 0.48 MnT in July’18.

Serajuddin stood the largest supplier at 0.19 MnT, contributing 39% of total sourcing by the company (up 9% M-o-M). OMC marked the second largest supplier at 0.09 MnT, up 5% M-o-M in Aug’18.

SN Mohanty and KJS Ahluwalia recorded a significant increase in Aug’18 supplies of iron ore at 0.05 MnT(up by more than two folds M-o-M) and 0.03 MnT (up by more than three folds on monthly basis) respectively.

Bhushan Steel’s pellet procurement stable M-o-M:

Bhushan steel procured 7 rakes of pellet for the month of Aug’18, stable on monthly basis. The Company sourced 5 rakes from JSPL and 2 rakes from BRPL.

Bhushan Steel Iron Ore Sourcing

Source: SteelMint Research
Quantity in MT
Provisional Data

Bhushan Steel was one of the companies underwent Bankruptcy proceedings. In May’18, NCLT (National Company Law Tribunal) finally gave its approval to Tata Steel’s resolution plan of acquiring debt-ridden Bhushan Steel under the Insolvency and Bankruptcy Code (IBC).