Bhushan Steel: Iron Ore & Pellet Sourcing Stable in FY’18

Bhushan Steel – a major integrated steel maker with a capacity of 5.6 MnT has recorded iron ore & pellet sourcing at 5.81 MnT in FY’18. The sourcing stood stable on yearly basis recording 5.74 MnT in FY’17.In Mar’18, Bhushan steel’s iron ore & pellet sourcing witnessed at 0.63 MnT. The company’s sourcing stood up by 50% M-o-M in Mar’18 as against 0.42 MnT in Feb’18.

Bhushan Steel is one of the companies that is undergoing Bankruptcy proceedings. In the first week of Mar’18, Tata Steel was officially announced as the highest evaluated resolution applicant by CoC (Committee of Creditors) to acquire a controlling stake of Bhushan Steel which was included in the list of accounts that filed for bankruptcy proceedings in June last year. The four bidders in the race for Bhushan Steel were Tata Steel, Arcelor Mittal, Vedanta and a consortium comprising of Japanese steel major JFE, JSW Steel and Bain-Piramal.

Bhushan Steel’s Iron Ore Procurement up Marginally in FY’18 –

In FY’18, Bhushan steel iron ore procurement was recorded at 5.33 MnT, up marginally compared to 5.07 MnT in FY’17.

In the fiscal year FY’18, Bhushan Steel depicted highest sourcing from Serajuddin mines at 1.32 MnT (up more than twice Y-o-Y), followed by OMC at 1.28 MnT (up 57% Y-o-Y), and Indrani Patnaik at 1.15 MnT (down 42% Y-o-Y). A.M.T.C recorded highest increase in sourcing on yearly basis at 0.13 MnT, up more than 6 times the sourcing in FY’17.

Iron ore procurement by Bhushan Steel increased to 0.62 MnT in Mar’18, an increase of 52% M-o-M against 0.41 MnT in Feb’18. Out of the total procurement, OMC stood the largest at 0.20 MnT (up 13% M-o-M), contributing 32% of total sourcing by the company , followed by Serajuddin at 0.14 MnT, KJS Ahluwalia at 0.09 MnT (up 40% M-o-M) and Rungta Mines at 0.07 MnT (up 37% M-o-M).

Procurement from Serajuddin mines in Mar’18 contributed 23% of total iron ore sourcing at 0.14 MnT as against nil sourcing in Feb’18. Due to closure of Serajuddin mine owing to failure of penalty payment relating illegal mining activities, the mine remained suspended from 1st Jan’18 to 23rd Feb’18. Post this, the company resumed operations resulting in steep rise in Mar’18 productions.

Bhushan Steel’s pellet procurement down 28% on yearly basis:

The company’s pellet procurement in FY’18 stood at 126 rakes, down 28% as against 174 rakes in FY’17. JSPL stood the largest supplier at 120 rakes, down 25% as against 160 rakes in FY’17. The remaining 6 rakes were supplied by Arya Iron & Steel, up by thrice the quantity supplied in last fiscal.

JSPL (Jindal Steel and Power), stood the only supplier of pellet to Bhushan steel in Mar’18 at 3 rakes, stable on monthly basis.

Bhushan Steel’s iron ore & pellet sourcing: FY’18 Vs FY’17

Source: SteelMint Research
Quantity in MT
Provisional Data