JSW Steel- India’s one of the largest private steelmaker total iron ore sourcing recorded at 4.67 mn t (million tonnes) in Q1 FY’21. The sourcing witnessed a drop of 17% as against 5.65 mn t in Q4 FY’20.
On a yearly basis too, sourcing declined as against 6.52 mn t in Q1 FY20.
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 increased its capacity utilization to an average of 83% in May’20 as against 38% in April 2020. However the average capacity utilisation dropped to 76% in Jun’20, primarily due to a fall in production at Vijayanagar Works.
Sourcing from Odisha dropped to halve in Q1 FY21
The steelmaker procured 0.44 mn t iron ore from Odisha based miners in Q1 FY’21, down 50% as compared to 0.88 mn t in Q4 FY’20. Sourcing from Odisha remained on lower side amid logistic issues and mills curtailing output due to nationwide lockdown for COVID 19 pandemic curtailment.
Sourcing from NMDC (C.G.) decreased for the quarter
JSW Steel (Dolvi) sourcing from NMDC fell to 0.79 mn t in Q1 FY’21 against 0.89 mn t in Q4 FY’20. Sourcing was affected in June’20 amid hindrance in loading activities in NMDC’s Bacheli iron ore mining complex. Loading activities were hampered since 12 June when the state government had disallowed NMDC to use its loading facilities to store iron ore prior to dispatching them in wagons.
JSW iron ore purchases from Karnataka e-auction down 11% q-o-q
JSW was sourced around 3.44 mn t iron ore from Karnataka e-auction, down against 3.88 mn t in the Q4 FY20.
Out of 3.44 mn t iron ore sourced by JSW, NMDC supplied 1.63 mn t down by 75% against 0.93 mn t in the last quarter (Jan- Mar’20) and thus contributed around 47% of total JSW sourcing.
Vedanta mines remained second-largest iron ore supplier to JSW Steel at 0.45 mn t in Q1 FY21, recording a decline of 13% on q-o-q basis. Other suppliers were SMIORE supplied 0.35 mn t, Ramanadurga iron ore mine 0.29 mn t, and others 0.73 mn t.
JSW Steel imports recorded nil in Q1 FY21
JSW Steel imports witnessed nil for the quarter (Q1FY21) owing to high global iron ore fines (Fe 62%) prices. In the last quarter spot iron ore prices increased at $94/t in Q1FY21 as against $89/t in Q4FY20.The rise in global iron ore prices fetched lower interest of Indian miners in importing the raw material.
JSW Steel Iron Ore Sourcing
Source: SteelMint,
Quantity in mn 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: The Company expects to ramp up iron ore production from its recently won mines in Odisha and existing captive Karnataka mines. Adding up output from recently won mines in Odisha, the company plans to have captive iron ore production around 21 mn t in FY21.
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