Bhushan Steel’s Iron Ore & Pellet Sourcing Down by 24% in Jul’16

Bhushan Steel – a major integrated steel maker has reduced its iron ore & pellet sourcing by 24% M-o-M in Jul’16. Last month the steel maker announced capacity expansion of hot strip production from 4 MnT pa to 5 MnT pa at it’s Dhenkenal plant in Odisha.

Iron ore sourcing of Bhushan Steel down by 17% M-o-M

Bhushan Steel procured 0.34 MnT iron ore from Odisha miners in Jul’16 compared to 0.41 MnT in Jun’16. Thus its sourcing has fallen by 17% M-o-M. The steel maker has increased its procurement from Indrani Patnaik mines to 0.19 MnT in Jul’16. While its sourcing from other major mines namely Rungta Mines and OMC have noticed decline in Jul’16.

The steel maker’s sourcing from KN Ram, Ghanashyam Misra and AMTC mines stood nil in Jul’16.

Bhushan Steel’s pellet sourcing reduces to half in Jul’16

Pellet sourcing of Bhushan Steel fell from 0.09 MnT in Jun’16 to 0.04 MnT in Jul’16. In the month of Jul’16, the steel maker procured only 12 rakes from merchant pellet makers out of which 10 rakes were procured from JSPL and the remaining two rakes from BRPL. After a gap of 2 months the steel maker has sourced pellets from BRPL

Bhushan Steel’s iron ore & pellet sourcing : Jun’16 vs Jul’16

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