ArcelorMittal Nippon Steel (AM/NS)- an integrated steelmaker with steelmaking capacity of 10 mn t p.a. recorded iron ore sourcing for the quarter Q1 FY’21 at 1.79 mn t, down sharply by 49% as against 3.5 mn t in Q1 FY20. Curtailed steel production due to pandemic lowered iron ore sourcing.
AM/NS iron ore sourcing in the month of June’20 recorded at 1.07 mn t as against 1.09 mn t in May’20.
Iron ore procurement from NMDC (C.G.) down 63% for the quarter
Steelmaker procured 740,500 t of iron ore in Q1 FY’21 from NMDC’s Bailadila mines (Chhattisgarh) via a slurry pipeline, against Q1 FY20 at 2 mn t. Sourcing was affected in June’20 amid hindrance in loading activities in NMDC’s Bacheli iron ore mining complex. Loading activities were hampered since 12 June when the state government had disallowed NMDC to use its loading facilities to store iron ore prior to dispatching them in wagons.
Sourcing from Odisha merchant mines down 32% in Q1 FY21
AM/NS sourced 966,406 t iron ore during first quarter FY21 from Odisha’s merchant mines, fall of 32% against Q1 FY20 sourcing at 1,419,054 t.
Sourcing from OMC dropped 8% to 78,175 t for the quarter as compared to 85,043 t in Q1 FY’20.
Out of the total iron ore sourced from Odisha merchant mines in Q1 FY’21, the largest share was contributed by KJS Ahluwalia at 227,643 t, followed by KN Ram at 208,902 MT and RP Sao at 205,040 t.
AM/NS iron ore imports marked nil in Q1 FY21
The iron ore and pellet imports by the miner recorded nil in Q1 FY21. The imports were last seen in the month of Dec’18 at 0.15 MnT. In the last quarter average spot iron ore prices increased at $94/t in Q1FY21 as against $89/t in Q4FY20. However, the prices dropped compared to Q1 FY20 at $100/t.
Qty in t
Provisional data
Source: SteelMint Research, Customs, Odisha govt.
AM/NS inked the Mine Development Cum Production Agreement (MDPA) with the Keonjhar district administration for restarting activity at the Thakurani mine. AMNS had bagged the Thakurani iron ore block formerly held by Kaypee Enterprises at Odisha’s online auctions, quoting a premium of 107.55%. A state official said AMNS should be able to start mining from the Thakurani block from July after obtaining the grant order from the mines department. The block is endowed with 179.26 mn t of iron ore. It has an approved capacity to mine 5.5 mn t p.a.
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