Essar Steel: Iron Ore Sourcing Up 59% Y-o-Y in FY17

Essar Steel – an integrated steelmaker with steel making capacity of 10 MnT pa reduced its iron ore & pellet sourcing by 59% Y-o-Y in FY17. The company sourced 11.6 MnT iron ore & pellets in FY17 against 7.28 MnT iron ore & pellets in FY16. In FY17, the steel maker sourced 94% from domestic sources, and remaining through imports.

The company registered growth in flat steel production of 47% Y-o-Y from 3.8 MnT in FY16 to 5.6 MnT in FY17. And its pellet production increased to 9.3 MnT in FY17, up by 60% Y-o-Y.

Iron ore procurement from NMDC (C.G.) doubled in FY17 – Essar Steel procured 6.78 MnT iron ore from NMDC’s Bailadila mines in Chhattisgarh in FY17 against 3.83 MnT in previous fiscal.

Sourcing from Odisha’s merchant mines increased 76% Y-o-Y – Essar Steel sourced 4.18 MnT iron ore from Odisha’s merchant mines in FY17 compared to 2.37 MnT in prior fiscal. Out of 4.18 MnT iron ore sourced from Odisha in FY17, largest share was of Serajuddin Mines (1.88 MnT) followed by KJS Ahluwalia mines at 1.28 MnT.

Essar Steel supplied concentrate to KIOCL and in turn procured 0.18 MnT pellets from KIOCL’s Mangalore port and moved to its Hazira facility in FY17.

Imports down by 39% in FY17 – Essar Steel imported 0.66 MnT iron ore/pellets in FY17 compared to 1.08 MnT in FY16. Out of 0.66 MnT imports in FY17, 0.32 MnT was iron ore which was imported from South Africa and Brazil. Remaining 0.34 MnT pellets imported in FY17 were from Bahrain and Australia.

Essar Steel: Iron Ore & Pellet Sourcing : FY17 vs FY16

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

Essar Steel’s pellet exports increased significantly in FY17 – Essar Steel exported 1.37 MnT pellets from Paradip port in FY17 to China. In FY16, the company exported 0.61 MnT pellets to China, Iran and UAE. Thus, exports have nearly doubled in FY17.