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AM/NS India: Iron ore sourcing up 30% m-o-m in Jan'21

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Fines/Lumps
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16 Feb 2021, 18:26 IST
AM/NS India: Iron ore sourcing up 30% m-o-m in Jan'21

ArcelorMittal Nippon Steel India (AM/NS India) - an Indian steel major, has recorded iron ore and pellet sourcing of 1.58 mn t in Jan'21, up sharply by 30% against 1.22 mn t in Dec'20. The figure includes AM/NS captive iron ore procurement.SteelMint learned from its sources that the steelmaker has recently booked two pellet vessels in Feb'21 from Odisha based manufacturers for its Hazira plant.

AM/NS India has reported 6% increase in its crude steel production with 1.9 mn t in Q4 CY'20 compared to 1.8 mn t in Q3 CY'20.

Iron ore procurement from NMDC (Chhattisgarh) up by 27% in Jan'21 Steelmaker procured 906,050 t of iron ore in Jan'21 from NMDC's Bailadila mines (Chhattisgarh) via slurry pipeline, against 714,000 t in Dec'20.

Sourcing from Odisha merchant mines increased 56% in Jan'21 The Company sourced 669,782 t iron ore from Odisha's merchant mines, up 56% m-o-m against Dec'20 sourcing at 429,616 t.

The Company's iron ore sourcing from OMC recorded nil in Jan'21 as against 7,574 t in Dec'20.

Out of the total iron ore sourced from Odisha merchant mines in Jan'21, the largest share was contributed by AM/NS at 446,566 t followed by Rungta mines at 95,664 t, and JSW Steel at 58,495 t.

Imports were nil for the month The company recorded nil imports for the month, according to customs data maintained with SteelMint. High global prices may continue to keep imports on the lower side. The average iron ore (Fe 62%) fines price increased to $168/t, CNF China in Jan'21 as against $155/t, CNF China in Dec'20.

AM/NS iron ore & pellet sourcing Jan'21 v/s Dec'20

Quantity in t
Source: SteelMint
Figure Includes AMNS Captive mines Iron Ore Procurement

Outlook:AM/NS inked a mine development and production agreement (MDPA) with the district of Sundargarh last week. With environmental clearances and the MDPA, AM/NS is only a grant away from starting work on the 99.59 mn t greenfield iron ore deposit, its second in the country. This may lower its iron ore sourcing from the merchant market. The company is expecting to complete its second pellet plant in Odisha by the end of first quarter of CY'21. With this 6 mn t pa pellet plant, the company's total pellet production capacity would reach 20 mn t pa.

 

16 Feb 2021, 18:26 IST

 

 

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