Steel maker’s iron ore imports increased while sourcing from NMDC (C.G.) declined sharply.
JSW Steel is India’s largest steel maker with crude steel production of 15.8 MnT in FY’17. JSW Steel the steel maker has significantly increased its iron ore sourcing by 35 % M-o-M to 2.56 MnT in Oct’17 against 1.89 MnT in Sept’17.
So far in FY18, (Apr-Oct’17) JSW Steel sourced 18.18 MnT iron ore and its crude steel output was recorded at 9.19 MnT in the same time frame.
Sourcing from NMDC (C.G.) decreased significantly in Oct’17 – JSW Steel (Dolvi) procured 17 rakes from NMDC Chhattisgarh mines in Oct’17 against 70 rakes in Sept’17 down by 76%. Reason for the sharp fell was the transportation on this route has been badly affected following disruption of railway line connecting Andhra Pradesh.
Iron ore import at 0.43 MnT in Oct’17 – JSW Steel iron ore imports reached 0.43 MnT in Oct’17.JSW has imported 0.43 MnT iron ore from Brazil and South Africa in Oct’17 and turned out to be the largest importer. The steel maker did not import any cargo in Sept’17. Out of 0.43 MnT iron ore imported in Oct’17, 0.34 MnT was imported from Brazil at Jaigarh port. Remaining 0.1 MnT iron ore was imported from South Africa at Krishnapatnam port.
Procurement from Karnataka up by 51% in Oct’17 – JSW Steel procurement increased significantly by 51% M-o-M in Oct’17 to 1.46 MnT iron ore from Karnataka e-auctions in Oct’17 compared to 0.97 MnT in Sept’17. Out of 1.46 MnT iron ore procured in Oct’17, share of NMDC was (41%) followed by Mysore Minerals Ltd (25%) and remaining was of private miners (34%). Out of 1.46 MnT iron ore sourced, 1.14 MnT was fines and 0.32 MnT was lump.
Iron ore Procurement from Odisha merchant mines down by 4% – JSW Steel decreased iron ore sourcing by 4% M-o-M to 0.54 MnT in Oct’17 compared to 0.56 MnT in Sept’17. Majority of iron ore sourced from Odisha was from Rungta Mines and KJS Ahluwalia.
Steel makers decreased the iron ore procurement from Jharkhand by 36% to 0.06 MnT in Oct’17 compared to 0.10 MnT in Sept’17.
Plant-wise iron ore sourcing pattern of JSW Steel: Oct’17 Vs Sept’17
| States | Oct-17 | Sep-17 |
| JSW Steel (Vijayanagar) | 1,749,278 | 1,286,432 |
| Karnataka | 1,400,000 | 918,000 |
| Odisha | 204,678 | 295,282 |
| Import | 90,700 | – |
| Jharkhand | 53,900 | 73,150 |
| JSW Steel (Dolvi Works) | 690,007 | 528,599 |
| Import | 340,720 | – |
| Odisha | 276,137 | 235,999 |
| Chhattisgarh | 65,450 | 269,500 |
| Jharkhand | 7,700 | 23,100 |
| JSW Steel (Salem Works) | 117,430 | 74,568 |
| Karnataka | 60,000 | 48,000 |
| Odisha | 57,430 | 26,568 |
| Grand Total | 2,556,715 | 1,889,599 |
Qty in MT
Provisional data,
Source: SteelMint Research
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