The steel maker procured 2.49 MnT iron ore and pellets from merchant market in H1 FY17.
Bhushan Steel – a major integrated steel maker has reduced its iron ore & pellet sourcing by 28% Q-o-Q from 1.45 MnT in Q1 FY17 to 1.04 MnT in Q2 FY17. So far in this fiscal (till Sept’16) it has procured 2.12 MnT iron ore and 0.37 MnT pellets from merchant market.
Iron ore sourcing of Bhushan Steel down by 26% Q-o-Q
Bhushan Steel procured 0.9 MnT iron ore from Odisha merchant miners in Q2 FY17 compared to 1.22 MnT in Q1 FY17. In quarter ended Sept’16, the steel maker procured major quantity of iron ore from Odisha mines namely – Indrani Patnaik (0.54 MnT), OMC (0.14 MnT), Essel Mining (0.09 MnT) and SN Mohanty (0.06 MnT).
While the steelmaker has reduced sourcing from Rungta Mines, KN Ram and AMTC over this quarter, its sourcing from Indrani Patnaik and Essel Mining has witnessed increment. Iron ore production from AMTC and KN Ram mines has fallen considerably in Q2 FY17 which might have led the steel maker to increase its sourcing from Indrani Patnaik and Essel Mining.
Bhushan Steel’s iron ore & pellet sourcing : Q2 FY17 Vs Q1 FY17
|
Particulars |
Iron ore & pellet sourcing | ||||||
| Apr’16 | May’16 | Jun’16 | Jul’16 | Aug’16 | Sept’16 |
Total |
|
|
Iron ore |
|||||||
| Rungta Mines | 164,944 | 96,472 | 69,236 | 23,089 | – | 9,452 | 363,193 |
| Indrani Patnaik | 119,018 | 134,408 | 184,057 | 196,084 | 153,415 | 193,113 | 980,095 |
| O.M.C. | 56,085 | 48,602 | 57,924 | 47,084 | 23,407 | 73,156 | 306,258 |
| Essel Mining | 8,390 | 7,955 | 36,462 | 41,536 | 33,578 | 15,214 | 143,135 |
| Others | 119,152 | 52,983 | 60,010 | 27,258 | 26,485 | 37,698 | 323,586 |
| Total (i) | 467,589 | 340,420 | 407,689 | 335,051 | 236,885 | 328,633 | 2,116,267 |
|
Pellet |
|||||||
| Brahmani River Pellets | 19,250 | – | – | 7,700 | 15,400 | – | 42,350 |
| Jindal Steel & Power | 50,050 | 73,150 | 88,550 | 38,500 | – | 77,000 | 327,250 |
| Total (ii) | 69,300 | 73,150 | 88,550 | 46,200 | 15,400 | 77,000 | 369,600 |
| Grand Total (i + ii) | 536,889 | 413,570 | 496,239 | 381,251 | 252,285 | 405,633 | 2,485,867 |
Qty in MT
Provisional data
Source: Odisha govt, Indian railways, SteelMint Research
Bhushan Steel’s pellet sourcing reduces to half in Q2 FY17
Pellet sourcing of Bhushan Steel fell from 0.23 MnT in Q1 FY17 to 0.14 MnT in Q2 FY17. The company has reduced its pellet sourcing from both pellet makers namely BRPL and JSPL.
The pellet makers being more interested in export over better realizations, remained less attractive in supplying pellets in domestic market.
Bhushan Steel’s net loss narrowed down in Q1 FY17
Company’s net loss in the period of Q1 FY17 was recorded at INR 656.21 crores against INR 728.16 crores a year ago (i.e. in Q1 FY16).
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