JSW Steel- India’s one of the largest private steelmaker total iron ore sourcing recorded at 1.94 mnt (million tonnes) in May’20. The sourcing witnessed a sharp rise as against 0.72 mnt in Apr’20.
In Company’s BSE filings towards the end of Mar’20, JSW Steel highlighted that the manufacturing operations in all of the locations had been either scaled down or suspended (in certain locations).However, the company has increased its capacity utilization to an average of 83% in May’20 as against 38% a month ago.
Sourcing from Odisha picked up sharply in May’20
The steelmaker procured 0.19 mnt iron ore from Odisha based miners in May’20, up significantly as compared to 0.04 mnt in Apr’20. The sourcing from odisha mines picked up for the month amid price drop announced by the merchant miners. On 19th May’20, Serajuddin Mines decreased iron ore lump offers by INR 500/MT. Essel Mining had cut offers for both 5-18mm and 10-30mm lumps w.e.f 16th May 2020, with prices down by around INR 1200/MT against the last revision in Mar’20.
Sourcing from NMDC (C.G.) picked up for the month
JSW Steel (Dolvi) sourcing from NMDC increased to 0.37 mnt (96 rakes) in May’20 against 0.17 mnt(43 rakes) in Apr’20. Sourcing improved for the month amid price cuts announced by the miner. The miner slashed iron ore fines and lump prices by INR 400/MT and DR CLO by INR 470/MT for the month of May’20.
JSW iron ore purchases from Karnataka e-auction increased in May’20
JSW sourced around 1.38 mnt iron ore from Karnataka e-auction, up sharply against 0.51 mnt in the month of Apr’20.
Out of 1.38 mnt iron ore sourced by JSW, NMDC supplied 0.58 mnt up by 29% against 0.45 mnt last month and thus contributed around 42% of total JSW sourcing.
SMIORE stood second-largest iron ore supplier to JSW Steel to 0.25 mnt in May’20 against 0.06 mnt in Apr’20 followed by Karnataka State Minerals Corporation Ltd. 0.17 mnt, Vedanta and Ramanadurga Iron Ore Mine at 0.1 mnt each, rest 0.17 mnt by other miners.
JSW Steel imports recorded nil in May’20
JSW Steel imports witnessed nil for the twelfth consecutive month in May’20. Monthly average global iron ore fines (Fe 62%) prices increased significantly by 11% to $94/MT, CFR China in May’20 against that in last month at $84/MT, CFR China. The rise in global iron ore prices fetched lower interest of Indian miners in importing the raw material.
JSW Steel Iron Ore Sourcing in May’20 & Apr’20
| Buyer | Load States | May’20 | Apr’20 |
| JSW Steel (Vijayanagar) | Karnataka | 1,301,400 | 488,000 |
| Odisha | – | 27,012 | |
| JSW Steel (Vijayanagar) Total | 1,301,400 | 515,012 | |
| JSW Steel (Dolvi Works) | Chhattisgarh | 369,600 | 165,550 |
| Odisha | 188,568 | 11,500 | |
| JSW Steel (Dolvi Works) Total | 558,168 | 177,050 | |
| JSW Steel (Salem Works) | Karnataka | 80,000 | 24,000 |
| Grand Total | 1,939,568 | 716,062 |
Source: SteelMint,
Quantity in t
Provisional Data
In Odisha iron ore and manganese mine block auction 2020, JSW Steel has bagged four iron ore mines, Nuagaon at 95.20%, Narayanposhi at 98.55%, Ganua block at 132% and Jajang at 110% premium.
Future plans: Company expects to ramp up iron ore production from its existing captive Karnataka mines and also start production from remaining mines in Karnataka which would add up 7 MnT in FY21. Adding up output from recently won mines in Odisha, the company plans to have captive iron ore production of 21 MnT in FY21.
For mine wise iron ore soucing, Click here
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