Bhushan Steel Raises Iron Ore & Pellet Sourcing by 22% in Jun’16

Bhushan Steel – India’s major steel making company has raised its iron ore sourcing by 22% M-o-M in Jun’16. Recently the steel maker has announced capacity expansion of hot strip production from 4 MnT pa to 5 MnT pa at it’s Dhenkenal plant in Odisha.

Bhushan Steel is an integrated steel maker which deals into product lines of sponge iron, billets, HRC, CRC and pipes.

It has increased its iron ore sourcing by 21% M-o-M and its pellet sourcing has moved up by 29% M-o-M in Jun’16. Bhushan Steel procures iron ore and pellet via railway movement.

Bhushan Steel’s iron ore sourcing from Jan’16-Jun’16

Bhushan Steel sourced nearly 2.8 MnT iron ore and pellet from merchant market in H1 CY16 (i.e. Jan’16-Jun’16). Talking of its iron ore sourcing, majority (40%) of the sourced quantity comes from Rungta Mines followed by Indrani Patnaik (34%) and Orissa Mining Corporation (8%). It sourced rest of the iron ore from mines namely Essel Mining, Serajuddin Mines, K.N. Ram and S.N. Mohanty.

In first half of 2016, Bhushan Steel procured 0.32 MnT pellets. Out of which 0.21 MnT was from JSPL and remaining quantity it sourced from BRPL. It can be inferred from the figures that the steel maker has raised its pellet procurement from JSPL in each successive month of Q1 FY17.

Qty in MT
Provisional data
Source: Odisha govt, SteelMint Research