Essar Steel – an integrated steelmaker with steel making capacity of 10 MnT p.a. recorded fall in its iron ore & pellet sourcing. The sourcing recorded at 0.98 MnT in Apr’18, down 32% M-o-M as against 1.44 MnT in Mar’18
The Y-o-Y iron ore & pellet sourcing also recorded a decrease of 6% in Apr’18 as against 1.04 MnT in Apr’17.
Iron ore procurement from NMDC (C.G.) declined 33% M-o-M
Essar Steel procured 0.62 MnT of iron ore in Apr’18 from NMDC’s Bailadila mines in Chhattisgarh via slurry pipeline, stood 33% down as against 0.92 MnT in Mar’18. However, on yearly basis it recorded marginal decline in Apr’18 compared to 0.65 MnT in Apr’17.
Sourcing from Odisha merchant mines reduced 19% in Apr’18
Essar Steel sourced 0.36 MnT iron ore in Apr’18 from Odisha’s merchant mines, down 19% M-o-M compared to 0.44 MnT in Mar’18. Out of the total iron ore sourced from Odisha in Apr’18, largest share was contributed by KJS Ahluwalia and Serajuddin mines at 0.13 MnT each. KJS Ahluwalia recorded 34% decline in its monthly supplies to Essar Steel in Apr’18, while Serajuddin depicted a decline of 17% on monthly basis. Other major supplier were Indrani Patnaik at 0.07 MnT (up 34% M-o-M) and Rungta mines at 0.03 MnT( up 32% on monthly basis).
Essar Steel imports recorded nil in Apr’18
Essar Steel witnessed nil imports in Apr’18, as against being 0.08 MnT in Mar’18.
Essar Steel’s iron ore & pellet Sourcing
| Seller | Apr’18 | Mar’18 | M-o-M (%) | Apr’17 | Y-o-Y (%) |
| NMDC | 617,750 | 916,450 | -33% | 646,100 | -4% |
| KJS Ahluwalia | 134,804 | 203,855 | -34% | 27,491 | 390% |
| Serajuddin | 128,931 | 155,269 | -17% | 308,970 | -58% |
| Indrani Patnaik | 66,075 | 49,219 | 34% | 25,555 | 159% |
| Rungta Mines | 26,923 | 20,411 | 32% | – | 100% |
| Kaypee Enterprises | 2,956 | 12,456 | -76% | 9,968 | -70% |
| Import | – | 80,000 | -100% | – | – |
| MG Mohanty | – | 1,999 | -100% | – | – |
| Others | – | – | – | 17,943 | -100% |
| Grand Total | 977,439 | 1,439,658 | -32% | 1,036,028 | -6% |
Qty in MT
Provisional data
Source: SteelMint Research, Customs, Odisha govt.
Debt laden Essar Steel is currently undergoing insolvency resolution process.
In the first round of bidding, Arcelor Mittal and Japan’s Nippon Steel had jointly bid to acquire Essar Steel.
The bids submitted by Numetal and Arcelor Mittal in first round in Feb’18 were rejected by the CoC (Committee of Creditors) and RP citing ineligibility on technical grounds.
In the second round of bidding process held on 2nd Apr’18 , ArcelorMittal along with Nippon of Japan, Anil Agarwal’s Vedanta and Numetal along with JSW Steel had put in their bids.
Later, National Company Law Tribunal (NCLT) directed the first round of bids to be considered and not the second round. Besides, last week Essar Steel’s CoC cited Arcelor Mittal and Numetal, that their bids submitted in first round will be considered only if all their debts are cleared in 7 days. Arcelor Mittal complied to the orders, and has successfully cleared its dues within the stipulated time. However, the final decision is still pending.
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