Essar Steel – an integrated steelmaker with steel making capacity of 10 MnT pa has sourced 2.6 MnT iron ore and pellets in Q1 FY17. Its steel plant located in Hazira (Gujarat) is into production of HRC, CRC, galvanised coils, pipes and plates. Its two pellet plants located in Paradip and Vizag are having capacities to produce 6 and 8 MnT pellets pa.
Essar Steel is presently sourcing iron ore from Odisha merchant miners, NMDC (C.G.) via slurry pipeline and through imports. Out of 2.6 MnT iron ore and pellets procured in Q1 FY17, share of domestic sources was 2.3 MnT while remaining share of 0.3 MnT was of imports.
The steel maker imported 0.18 MnT iron ore from South Africa in Apr’16. While it imported 0.14 MnT pellets via two import shipments from Bahrain in May’16 and Jun’16 respectively.
Out of 2.3 MnT iron ore procured from domestic market, 1.6 MnT was procured through NMDC’s slurry pipeline. The 267 km long slurry pipeline connects its benefication plant in Chhattisgarh to its pellet plant in Vizag. Remaining quantity was sourced primarily from Indrani Patnaik (0.2 MnT).
Essar Steel’s iron ore sourcing in Q1 FY17
|
Particulars |
Apr’16 | May’16 | Jun’16 |
Total |
| 1. Import | 175,000 | 65,500 | 72,000 | 312,500 |
| 2. Domestic | 740,844 | 764,815 | 768,503 | 2,274,162 |
| NMDC (C.G.) | 519,850 | 549,000 | 550,000 | 1,618,850 |
| Indrani Patnaik | 10,724 | 83,726 | 109,875 | 204,325 |
| K.J.S. Ahluwalia | 8,879 | 41,098 | 49,977 | |
| Kaypee Enterprises | 8,627 | 31,068 | 39,696 | |
| Others | 210,271 | 114,583 | 36,462 | 361,316 |
| Total (1+ 2) | 915,844 | 830,315 | 840,503 | 2,586,662 |
Qty in MT
Provisional data
Source: SteelMint Research, Customs, Odisha govt.
Essar Steel’s pellet production in Q1 FY17 up by 58% Y-o-Y
Essar Steel produced 2.02 MnT pellets in Q1 FY17 against 1.28 MnT in Q1 FY16, thus registering growth of 58% Y-o-Y.
Essar Steel has recently won the iron ore block “Ghoraburhani Sagasahi” in Odisha’s mineral block auction which has total resources of 99.59 MnT. With the availability of this iron ore mine and full production at the pellet plant, Essar Steel is poised to maintain production at high levels.
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