India: JSW Steel’s Iron Ore Imports Increased Sharply in Jan’18

Restricted iron ore supply post closure of five iron ore mines in Odisha, the steel maker has raised iron ore procurement through imports.

JSW Steel – India’s largest steel maker recorded highest ever crude steel output in Jan’18 which stood at 1.46 MnT, an increase by 7% Y-o-Y basis as compared to 1.36 MnT in Jan’17. On monthly basis the company’s crude steel output recorded marginal increase of 4% in Jan’18 which was at 1.41 MnT in preceding month.

On monthly premises, the company’s iron ore sourcing remained stable at 3.22 MnT in Jan’18 against 3.24 MnT in Dec’17.

In the first ten months of FY’18, (Apr’17-Jan’18) JSW Steel has sourced 27.36 MnT iron ore and its crude steel output was recorded at 13.43 MnT in the same time frame.

Sourcing from NMDC (C.G.) increased more than twice in Jan’18 :

JSW Steel (Dolvi) procured 50 rakes from NMDC Chhattisgarh mines in Jan’18, up by 150% compared to Dec’17 which was at 20 rakes. NMDC Chhattisgarh increased iron ore prices up to 22% for Jan’18 after increasing prices by 13% in Dec’17.

JSW witnessed more than five folds increase in imports in Jan’18:

JSW Steel imported a total of 1.49 MnT iron ore in Jan’18, up by more than five times as against 0.23 MnT in Dec’17. Out of 1.49 MnT iron ore imported from Brazil and Australia in Jan’18, 0.85 MnT iron ore was imported at Jaigarh port and 0.57 MnT iron ore imported at Krishnapatnam Port and the remaining 0.07 MnT in Karaikal Port. JSW generally imports ore as hedged cargo under long-term contracts.

Procurement from Karnataka declined by 46% in Jan’18:

JSW Steel procurement decreased by 46% M-o-M to 1.27 MnT iron ore from Karnataka e-auctions in Jan’18 compared to 2.36 MnT in Dec’17. Out of 1.27 MnT iron ore sourced, 0.91 MnT was fines (down 50% M-o-M) and 0.36 MnT was lumps(down 33% M-o-M) .

NMDC supplied 0.74 MnT iron ore via e-auction in Jan’18, down 27% as against 1.01 MnT in Dec’17, contributing 58% of total share.

Iron ore Procurement from Odisha merchant mines declined by around 50% in Dec’17:

JSW Steel iron ore sourcing decreased to almost half in Jan’18, at 0.26 MnT as against 0.51 MnT in Dec’17. JSW Steel’s iron ore procurement from Odisha mines has come down post closure of few mines (like Serajuddin, Essel etc) in Odisha that were unable to submit penalty amounts by the fixed deadline of 31 Dec’17. JSW was the largest buyer of iron ore from Serrajuddin in CY’17 at 1.84 MnT contributing 19% of total share of iron ore dispatches by Serajuddin Mines. Amid reduced procurement from Odisha the steel maker has increased imports.

Steelmaker iron ore procurement from Jharkhand recorded nil in Jan’18 as against 0.06 MnT in Dec’17.

Plant-wise iron ore sourcing pattern of JSW Steel: Jan’18 Vs Dec’17

Source: SteelMintResearch, Karnataka DMG, Odisha govt.
Quantity in MnT
Provisional Data