ArcelorMittal Nippon Steel India Limited: Iron Ore Sourcing Down Marginally in Dec’19

ArcelorMittal Nippon Steel (erstwhile Essar Steel) – an integrated steelmaker with steel making capacity of 10 MnT p.a. recorded fall in iron ore sourcing for the month of Dec’19 at 1.14 MnT, down 4% as against 1.19 MnT in Nov’19.

Iron ore procurement from NMDC (C.G.) fell for the month
ArcelorMittal Nippon Steel procured 0.68 MnT of iron ore in Dec’19 from NMDC’s Bailadila mines (Chhattisgarh) via slurry pipeline, down against Nov’19 procurement by the company at 0.70 MnT.

Sourcing from Odisha merchant mines down slightly in Dec’19
ArcelorMittal Nippon Steel sourced 0.45 MnT iron ore in Dec’19 from Odisha’s merchant mines, slight drop against Nov’19 sourcing at 0.46 MnT. Sourcing from OMC dropped sharply to 12,930 MT for the month as compared to 29,769 MT a month ago (in Nov’19).

Out of the total iron ore sourced from Odisha merchant mines in Dec’19, largest share was contributed by Serajuddin at 0.28 MnT (down 15% M-o-M).

Sourcing from KJS Ahluwalia and KN Ram recorded at 117,869 MT (up 74% on a monthly basis) and 13,261 MT (down 72% M-o-M) respectively. Sourcing from Rungta mines recorded at 24,817 MT against nil a month ago.

Most the miners from Odisha increased iron ore fines and lumps offers in the last one month, fines by around INR 600-700/MT and in lumps around 1,000-1100/MT (Ex-mines).

ArcelorMittal Nippon Steel iron ore imports marked nil in CY19
Essar Steel’s iron ore and pellet imports continues to remain nil for the month of Dec’19. The imports were last seen in Dec’18 at 0.15 MnT.

The imports have been on the lower side amid high global prices. Monthly average global iron ore fines (Fe 62%) prices in Dec’19 witnessed at USD 91/MT, CFR China as against USD 84.5/MT, CFR China in Nov’19. Also, the global iron ore prices picked up the year, reaching as high as USD 120/MT, CFR China in July’19.

ArcelorMittal Nippon Steel Iron ore Sourcing in Dec’19 & Nov’19

Qty in MT
Provisional data
Source: SteelMint Research, Customs, Odisha govt.

ArcelorMittal on 17th Nov announced the acquisition of Essar Steel India Limited (ESIL), and simultaneously established a joint venture with Nippon Steel Corporation (‘Nippon Steel’), called ArcelorMittal Nippon Steel India Ltd (‘AM/NS India’), which will own and operate ESIL. ArcelorMittal holds 60 percent of AM/NS India, with Nippon Steel holding the balance. Also, the new owners of Essar Steel have decided to ramp up the capacity to around 12 MnT to 15 MnT per annum.