Bhushan Steel – a major integrated steel maker with a capacity of 5.6 MnT has recorded iron ore & pellet sourcing at 0.50 MnT in July’18. The sourcing witnessed increase of 55% as against sourcing in June’18 at 0.32 MnT.
Bhushan steel has increased iron ore sourcing significantly after getting approval from NCLT and CCI for acquisition of Bhushan Steel, Tata Steel is eyeing to increase its operational efficiency. Bhushan Steel has steel is currently operating at 3.5 MnT pa. Tata Steel is trying to increase its capacity utilization to 100% in next couple of years. Tata Steel will be benefited from the synergies like downstream capacities which Bhushan Steel has.
Bhushan Steel’s Iron Ore Procurement up 50% in July’18 –
Bhushan Steel iron ore procurement in July’18 witnessed at 0.48 MnT, up 50% M-o-M as against 0.32 MnT in June’18. Serajuddin stood the largest supplier at 0.18 MnT, contributing 38% of total sourcing by the company (up more than two folds M-o-M). OMC marked the second largest supplier at 0.08 MnT, down 31% M-o-M in Jul’18.
Indrani Patnaik and A.M.T.C recorded significant increase in July’18 supplies at 0.08 MnT(up by more than four folds M-o-M) and 0.05 MnT (up by two folds on monthly basis) respectively.
Bhushan Steel’s pellet procurement increased more than three folds in July’18:
Bhushan steel procured 7 rakes of pellet for the month of July’18 as against 2 rakes a month before. The Company sourced 5 rakes from JSPL and 2 rakes from Thriveni Pellet Pvt. Ltd.
Bhushan Steel Iron Ore Sourcing
| Bhushan Steel Iron Ore Sourcing | ||
| Seller | July’18 | June’18 |
| Serajuddin | 176,855 | 78,570 |
| OMC | 84,573 | 123,095 |
| Indrani Patnaik | 76,949 | 17,598 |
| A.M.T.C | 52,382 | 25,665 |
| RP Sao | 43,704 | 54,160 |
| SN Mohanty | 21,588 | 13,779 |
| Essel Mining | 10,989 | – |
| KJS Ahluwalia | 8,980 | – |
| Tata Steel | 470 | – |
| Rungta Mines | – | 3,808 |
| Total | 476,490 | 316,674 |
| Bhushan Steel Pellet Sourcing | ||
| Seller | July’18 | June’18 |
| Jindal Steel & Power Ltd | 19,250 | – |
| Thriveni Pellet Pvt Ltd | 7,700 | 3,850 |
| Arya Iron & Steel Ltd | – | 3,850 |
| Total | 26,950 | 7,700 |
| Grand Total | 503,440 | 324,374 |
Source: SteelMint Research
Quantity in MT
Provisional Data
Bhushan Steel was one of the companies underwent Bankruptcy proceedings. In May’18, NCLT (National Company Law Tribunal) finally gave its approval to Tata Steel’s resolution plan of acquiring debt-ridden Bhushan Steel under the Insolvency and Bankruptcy Code (IBC).
Bhushan Steel to source iron ore from Tata Steel’s captive iron ore mines –
Recently, Tata Steel has got approval from Odisha government to sell iron ore to Bhushan Steel from its captive Khandabandh iron ore mine (8MTPA) under the arms length pricing principle, which is expected to enhance sourcing by the company in upcoming months. Currently, the mines are supplying iron ore to Tata steel’s Kalinganagar plant.
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