India: JSW iron ore sourcing from merchant market down marginally in July’20

JSW Steel- India’s one of the largest private steelmaker total iron ore sourcing recorded at 1.95 mn t in July’20. The sourcing witnessed a drop of 3% as against 2.02 mn t in June’20.

On a yearly basis, sourcing picked up as against 1.89 mn t in July’19.

JSW Steel increased crude steel production on an m-o-m basis across product categories in Jul’20, as average capacity utilization increased to 83% in Jul’20 compared to 76% in Jun’20.

Sourcing from Odisha dropped 44% in July’20

The steelmaker procured 0.12 mn t of iron ore from Odisha based miners in July’20, down 44% as compared to 0.21 mn t in June’20. Sourcing from Odisha remained on the lower side amid logistic issues.

Sourcing from NMDC (C.G.) dropped 42% for the month

JSW Steel (Dolvi) sourcing from NMDC fell to 0.15 mn t in July’20 against 0.26 mn t in June 20.

JSW iron ore purchases from Karnataka e-auction down 8% m-o-m

JSW sourced around 1.68 mn t iron ore, up by 8% against 1.55 mn t in the month of Jun’20. Out of 1.68 mn t iron ore sourced by JSW in Jul’20, NMDC supplied 0.6 mn t, up by 3% against 0.58 mn t last month, contributing around 36% of total JSW sourcing.
Vedanta remained the second-largest iron ore supplier to JSW Steel, with 0.5 mn t sales in Jul’20 against 0.35 mn t in Jun’20.

Other suppliers to JSW Steel were Ramanadurga Iron Ore Mine at 0.17 mn t, Karnataka State Minerals Corporation Ltd at 0.13 mn t and others at 0.29 mn t.

JSW Steel imports recorded nil in July’20

JSW Steel imports witnessed nil for the nil for the month owing to high global iron ore fines (Fe 62%) prices. The average global iron ore prices in July’20 witnessed rise to $107/t, CFR China as against average price of about $103/t, CFR China in June’20.

JSW Steel Iron Ore Sourcing

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.

JSW Steel has commenced dispatch of iron ore from Odisha, following start of operations from all of its four newly-acquired mines.

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.