Bhushan Power & Steel iron ore sourcing up 51% in May’20

Bhushan Power & Steel – a major integrated steel maker with a capacity of 3.5 mn t has recorded iron ore sourcing at 93,086 t in May’20. The sourcing witnessed a rise of 51% as against 61,679 t in Apr’20.

Sourcing from Essel mining picked up in May’20

Indrani Patnaik stood as the largest supplier at 34,633 t in May’20, almost stable M-o-M as against 34,650 t a month ago.

Sourcing from Essel Mining picked up to 25,557 t in May’20 as against nil a month ago. The sourcing picked on price drop announced by the miner. Essel Mining had cut offers for both 5-18mm and 10-30mm lumps w.e.f 16th May 2020, with prices down by around INR 1200/MT against the last revision in Mar’20.

Sarda Mines recorded supplies at 19,349 t, stable on a monthly basis. The Supreme Court as on 30th Jan 2020 allowed Sarda mines to resume operations. Apex court was allowed on the condition to pay dues towards environmental compensation to the Odisha Govt. by 29 Feb’20. The Honorable court also made it clear that JSPL can transport iron ore lying at Sarda mines.

Sourcing from OMC increased to 13,547 t as compared to nil a month ago.

Bhushan Power & Steel: Iron Ore Sourcing May’20 v/s Apr’20

Source: SteelMint Research
Quantity in t
Provisional Data
the figures include only rake movement, road movement is excluded

On 10th June, the Supreme Court of India directed parties involved in the Bhushan Power and Steel (BPSL) insolvency case to file additional documents and affidavit within two weeks. The apex court also directed the Committee of Creditors to clarify on the application filed by JSW Steel. The next hearing for the case is scheduled as on 6th July’20.

JSW Steel was supposed to make payment before 16th Mar’20 for the acquisition of BPSL. However, amid the pandemic, JSW Steel has sought more time to make payments to banks for BPSL acquisition.