India: JSW Steel Increases Iron Ore Purchases from Odisha, Drops Significantly from Karnataka

1. JSW Steel’s procurement from NMDC’s Karnataka mines fell sharply by 95% M-o-M
2. JSW Steel significantly increased purchases from Odisha mines for its Vijayanagar & Salem plants

JSW Steel – India’s largest steel maker iron ore sourcing recorded significant decrease in Apr’18. The iron ore sourcing stood at 1.91 MnT, down 44% M-o-M as against 3.39 MnT in Mar’18.

JSW has reduced its sourcing from NMDC, Karnataka by 95% on monthly basis and looks is shifting to Odisha and imports to fulfil the demand. The steel mill is presently seen importing iron ore from Australia and plans to imports around 0.7-0.8 MnT on monthly basis, out of which 0.5-0.6 MnT would be utilised at its Vijayanagar faciility and rest 0.2 MnT at its Dolvi unit.

Procurement from Odisha merchant mines increased by 17% M-o-M:

In Apr’18, the company’s iron ore sourcing from Odisha increased to 0.42 MnT, up 17% as against 0.36 MnT in Mar’18. The sourcing remained low for the first two months of CY’18 owing to closure of few major mines due to illegal mining activities while, it took a forward leap in Mar’18 and increased further in the month of Apr’18. Also Odisha based merchant miners are giving discounts of INR 200-400/MT on bulk bookings which is benefitting big players. SteelMint learned from its sources that JSW Steel is actively purchasing iron ore from Odisha mines in this month also.

Steelmaker’s iron ore procurement from Jharkhand in Apr’18 recorded at 0.02 MnT as against being nil a month before.

Sourcing from NMDC (C.G.) declines 18% M-o-M:

JSW Steel (Dolvi) procured 49 rakes from NMDC Chhattisgarh mines in Apr’18, down as against 60 rakes in Mar’18. NMDC Chhattisgarh kept base prices in line with Mar’18 prices for around first half of Apr’18, but reduced the same by around INR 100-110/MT as on 18th Apr’18.

JSW depicted 41% decrease in its iron ore imports:

JSW Steel continued to remain India’s largest importer in Apr’18 and recorded imports at 0.67 MnT, down 41% M-o-M as compared to 1.13 MnT in Mar’18. Out of 0.67 MnT iron ore imported by JSW Steel from Australia in Apr’18, 0.5 MnT was imported at Krishnapatnam port and rest 0.17 MnT at Jaigarh port.

Procurement from NMDC Karnataka down 95% M-o-M:

JSW Steel’s iron ore purchases from Karnataka e-auctions stood at 0.62 MnT in Apr’18, down by 63% M-o-M compared to 1.67 MnT in Mar’18. Out of 0.62 MnT iron ore sourced 0.45 MnT was fines and remaining was lumps. JSW iron ore procurement from NMDC witnessed at 0.06 MnT in Apr’18 (down 95% M-o-M).

Plant-wise iron ore sourcing pattern of JSW Steel: Apr’18 Vs Mar’18

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