The Y-o-Y iron ore & pellet sourcing recorded increase of 25% in June`18 as against 0.98 MnT in June`17.
On quarterly basis, the procurement in first quarter FY`19 witnessed at 3.48 MnT, in line with Q4 FY`18. However, on yearly basis the procurement for Q1 FY`19 stood up by 14% as against Q1 FY`18 which stood at 3.06 MnT.
Iron ore procurement from NMDC (C.G.) fell 22% M-o-M
Essar Steel procured 0.66 MnT of iron ore in June`18 from NMDC`s Bailadila mines in Chhattisgarh via slurry pipeline, stood 22% down as against 0.85 MnT in May`18. On yearly basis, the company depicted 19% increase in June`18 sourcing as compared to 0.55 MnT in June`17.
Sourcing from Odisha merchant mines increased 16% in June`18
Essar Steel sourced 0.45 MnT iron ore in June`18 from Odisha`s merchant mines, increase of 16% M-o-M compared to 0.39 MnT in May`18. Out of the total iron ore sourced from Odisha in June`18, largest share was contributed by KJS Ahluwalia at 0.20 MnT (down 8% M-o-M).
Essar Steel`s sourcing from Serajuddin depicted significant rise by around eight folds on monthly basis at 0.17 MnT against 0.02 MnT a month before. Odisha based merchant miners were seen offering discounts of INR 300-400/MT on bulk purchases attracting the steel mills.
Essar Steel imports remain stable on monthly basis
Essar Steel witnessed imports at 0.11 MnT from Brazil in June`18 with complete quantity being iron ore, as against 0.09 MnT of pellet imports from Bahrain in May`18.
Essar Steel`s iron ore & pellet Sourcing
Essar Steel NCLT case update
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 eligibility on technical grounds.
In the second round of bidding process held on 2nd Apr`18, Arcelor Mittal along with Nippon of Japan, Anil Agarwal`s Vedanta and Numetal along with JSW Steel had put in their bids.
On 22 May`18, the tribunal heard submissions from Numetal and ArcelorMittal, who are the two prominent bidders for Essar Steel. While Arcelor Mittal sticked to its stance that the company`s bid in first round of bidding should be considered and Numetal pleaded for opening of second round of bidding.
Later, Numetal and Arcelor Mittal filed cross petitions challenging each other`s eligibility to bid for Essar Steel. However, the decision is still pending and the next hearing is scheduled on 16th July.