India: JSW Steel Increases Iron Ore Imports; Drops Purchase from Others Sources

• JSW imports recorded sharp rise by more than two folds at 1.27 MnT in July
• Sourcing from Odisha, NMDC (C.G) reduced over price rise announced

JSW Steel- India’s largest steel maker recorded imports at 1.27 MnT, up by more than two folds M-o-M as compared to 0.47 MnT in June’18. Out of the total imports in July’18, JSW imported 1.09 MnT from Australia and remaining 0.18 MnT from Brazil. The company imported 0.74 MnT iron ore at Krishnapatnam port while the remaining imports from Jaigarh port at 0.53 MnT.

Amidst increasing prices by Odisha miners and NMDC (C.G), JSW has increased dependence on imports.

JSW Steel – iron ore sourcing recorded increase in July’18. The total iron ore sourcing stood at 2.35 MnT, up 12% M-o-M as against 2.09 MnT in June’18. JSW Steel’s crude steel output stood at 1.378 MnT inched up by 1% against 1.37 MnT in preceding month.

Sourcing from NMDC (C.G.) down 63% in July’18:-

JSW Steel (Dolvi) procured 18 rakes from NMDC Chhattisgarh mines in July’18, decline of 63% as against 48 rakes in June’18 owing increase in NMDC prices.

National Mineral Development Corporation (NMDC) had announced increase in prices by INR 140-180/MT on 10th July. The prices for Baila fines and lumps moved up by INR 150/MT and prices of ROM by INR 140/MT. DR-CLO prices increased by INR 180/MT.

JSW purchases from Karnataka dropped 29% in July’18:

JSW Steel’s iron ore purchases from Karnataka e-auctions stood at 0.75 MnT in July’18, down 29% M-o-M compared to 1.06 MnT in June’18. Out of 0.75 MnT iron ore sourced by JSW, NMDC had supplied 0.62 MnT in Jul’18 (83% of total sourcing). NMDC supplied 0.3 MnT fines and 0.33 MnT Lumps to JSW, rest were supplied by private miners at 0.1 MnT fines and 0.02 MnT lumps.

On 10th July, NMDC announced base prices to remain unchanged in e-auctions. Later on 26th Jul’18, NMDC had reduced base prices in Karnataka e-auctions. Fines prices have come down by INR 300/MT and lump prices by INR 100/MT.

The steelmaker’s sourcing from private mines decreased sharply from 0.61 MnT in Jun’18 to 0.13 MnT in Jul’18.

JSW sourcing from Odisha declined over price rise in July’18:

The steelmaker procured 0.26 MnT iron ore from Odisha based miners in July’18, down 34% on monthly basis as against 0.39 MnT in June. Major miners had announced price hike of INR 300/MT in lump and fines earlier in July’18 following increase in Royalty. Besides, logistics bottlenecks in eastern India further contributed to price rise. Again on 26th July, the Odisha miners raised iron ore fines prices by INR 150/MT.

Plant-wise iron ore sourcing pattern of JSW Steel: July’18 Vs Jun ’18

Source: SteelMint, karnataka DMG, Railways
Quantity in MnT
Provisional Data