AM/NS India: Iron ore sourcing down 13% m-o-m in Feb’21

ArcelorMittal Nippon Steel India (AM/NS India) – Indian steel major, has recorded iron ore and pellet sourcing of 1.38 mn t in Feb’21, down sharply by 13% against 1.58 mn t in Jan’21. The company’s captive iron ore sourcing from Odisha was recorded at 414,053 t in Feb’21 as against 446,566 t in Jan’21.

Iron ore procurement from NMDC (Chhattisgarh) down by 11% in Feb’21– The steelmaker procured 810,250 t of iron ore in Feb’21 from NMDC’s Bailadila mines (Chhattisgarh) via slurry pipeline, against 906,050 t in Jan’21.

Sourcing from Odisha merchant mines decreased 31% in Feb’21 The Company sourced 153,362 t iron ore from Odisha’s merchant mines, down 31% m-o-m against Jan’21 sourcing at 223,216 t.

Out of the total iron ore sourced from Odisha merchant mines in Feb’21, the largest share was contributed by IndraniPatnaik at 80,402 t followed by Rungta mines at 52,969 t.

The company recorded nil imports for the month, according to customs data maintained with SteelMint. High global prices may continue to keep imports on the lower side. Global prices continued to increase throughout the month of Feb’21. The spot iron ore fines (Fe 62%) index stood at $158/t, CNF China towards early Feb’21 and increased to $174/t, CNF China towards Feb’21 end.

AM/NS iron ore sourcing Feb’21 v/s Jan’21

Quantity in t
Source: SteelMint
Figure Includes AMNS Captive mines Iron Ore Procurement

Key highlights

• The company had booked two pellet vessels from Odisha based players in the month of Feb’21 for its Hazira steel plant, sources have confirmed to SteelMint.
•  AM/NS India has reported a 6% increase in its crude steel production with 1.9 mn t in Q4 CY’20 compared to 1.8 mn t in Q3 CY’20. The demand for steel in India has improved post-unlock, as a result, the company is operating at higher utilization levels in all its facilities.
• The company is planning to operate its newly acquired Thakurani iron ore mines at a full 5.5 mn t pa capacity by the end of Q1 CY’21, the company announced in its Q4 CY’20 report. Earlier, because of restrictions and lack of demand due to pandemic, the steelmaker was operating the mine at less than the actual capacity.
•  The company is expecting to complete its second pellet plant in Odisha by the end of the first quarter of CY’21. With this 6 mnt pa pellet plant, the company’s total pellet production capacity would reach 20 mn t pa.