Essar Steel – an integrated steelmaker with steel making capacity of 10 MnT pa reduced its iron ore & pellet sourcing by 7% M-o-M in Feb’17. The company sourced 0.92 MnT iron ore in Feb’17 against 0.99 MnT iron ore & pellets in Jan’17.
In the month of Feb’17, the steel maker focused completely on domestic sources and no import vessel was seen.
Iron ore procurement from NMDC (C.G.) down by 11% M-o-M – Essar Steel procured 0.56 MnT iron ore from NMDC’s Bailadila mines in Chhattisgarh in Feb’17 against 0.63 MnT in Jan’17.
Sourcing from Odisha’s merchant mines down marginally in Feb’17 – Essar Steel sourced 0.36 MnT iron ore from Odisha’s merchant mines in Feb’17 compared to 0.37 MnT in Jan’17. Out of 0.36 MnT iron ore sourced from Odisha in Feb’17, largest share was of Serajuddin Mines (0.26 MnT) followed by KJS Ahluwalia mines at 0.07 MnT.
Essar Steel’s iron ore & pellet sourcing: Feb’17 vs Jan’17
| Particulars | Jan’17 | Feb’17 |
| 1. Import | – | – |
| 2. Domestic | 995,063 | 924,686 |
| NMDC (C.G.) | 625,000 | 563,650 |
| Indrani Patnaik | 19,248 | 13,294 |
| K.J.S. Ahluwalia | 181,442 | 74,572 |
| Kaypee Enterprises | 23,325 | 14,073 |
| Serajuddin Mines | 123,079 | 257,942 |
| Others | 22,969 | 1,155 |
| Total (1+ 2) | 995,063 | 924,686 |
Qty in MT
Provisional data
Source: SteelMint Research, Customs, Odisha govt.
So far in this fiscal (till Feb’17), Essar Steel has procured 10.75 MnT iron ore & pellets from domestic market as well as through imports.
Essar Steel’s pellet exports and coastal movement down in Feb’17 – Essar Steel exported 0.16 MnT pellets from Paradip port in Feb’17 against 0.21 MnT in Jan’17. All the pellet export shipments observed in Feb’17 were directed to China.
As per customs data maintained with SteelMint in Feb’17, Essar Steel moved 0.66 MnT pellets from its Vizag & Paradip plants to its Hazira steel plant via coastal vessel movement. In Jan’17, the steel maker moved 0.72 MnT pellets to its Hazira facility.
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