Tata Steel, India’s 3rd largest Steel producer with 9.1 MnT production in FY14, has been consistently procuring Iron ore from other countries as well as states. It has also purchased Iron Pellets from JSPL.
A vessel named Jin Xiu Feng, carrying 45,000 MT Iron ore is expected at Paradip Port on 27 June, 2014. The material has been loaded at Hedland Port in Australia.
Tata Steel has purchased 6 rakes i.e. about 24,000 MT Iron Pellets from Jindal Steel & Power Barbil based Pellet plant, which has been delivered in June, 2014.
Prior to this, Tata Steel had participated in NMDC’ s advance Iron ore e-auction from Chattisgarh’s Bailadila mines, which was conducted on 06 June, 2014. The former had bid for and was allotted about 40,000 MT Iron ore (32,000 MT fines and 8,000 MT lumps) out of 136,000 MT total offered quantity. Landed cost for Fe 64% fines was around INR 5,600-5,700/MT (inclusive of royalty).
Tata Steel has been importing Iron ore from Australia based miner Polaris Metal, that have Iron ore assets in western Australia named Carina mines. The material is loaded at Australia’s Kwinana port; Paradip and Haldia are various unloading ports.
|
Tata Steel Iron Ore Imports |
|||||
|
Unloading Port |
Date |
Qty |
Prices |
Vessel Name |
Origin |
|
Paradip |
27-Jun-14* |
45,000 |
– |
Jin Xiu Feng |
Australia |
|
Haldia |
15-Jun-14 |
26,487 |
97-99 |
Marianna |
Australia |
|
Paradip |
09-Jun-14 |
19,000 |
96.6 |
Marianna |
Australia |
|
Haldia |
24-Apr-14 |
29,000 |
109.0 |
Yvonne |
Australia |
|
Paradip |
19-Apr-14 |
16,000 |
107.6 |
Yvonne |
Australia |
|
Total |
135,487 |
|
|
|
|
Qty in MT
CNF prices in USD/MT
*Expected
Provisional Data
Source: SteelMint research
It has been heard that the company has plans to import Iron ore from Brazil and Chille in South American, at Paradip and Haldia port.
Assumption that Jharkhand government may act upon mines which are operating under second deemed renewal, Tata Steel is reliant on import. The company has been looking at import prospects behind Supreme Court’s verdict on suspension of mining operations in Odisha. Out of 26 Iron ore and Manganese ore mines that were running under second deemed renewal, 10 merchant Iron ore mines had produced 19.1 MnT Iron ore in FY14. In addition, Odisha government has not yet been allowed sale of stockpile from merchant miners.
In FY14, Odisha produced 72 MnT Iron ore and Tata Steel produced 6.3 MnT Iron ore from mines in Odisha. The company has captive Iron ore mines in Odisha and Jharkhand.
Railway Freight from various ports to Tata Steel plant at Jamshedpur (Jharkhand)
Haldia Port – Tata Plant: INR 550-650/MT
Paradip Port – Tata Plant: INR 1,000-1,100/MT
Dhamra Port- Tata Plant: INR 750-850/MT
NMDC (Bailadila Mines) – Tata Plant: INR 2,250-2,350/MT
* For reference purpose only
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