JSW steel Ltd, India's second largest steel maker with an annual crude steel production capacity of 14.3 million tons have been facing issues with supply of iron ore since Supreme court had banned iron ore mining in Karnataka.
JSW steel has been looking for alternatives for Iron ore and one of them is Odisha.
According to data released by South Eastern Railways, it was noticed that JSW steel has secured almost 290,000 tons of iron ore in the 4th quarter 2012-2013. Which is down by 50,000 tons from last quarter.
Industry experts highlight that in the month of January, Odisha government had asked to reserve 50% of supply of iron ore to local industries, which was later scrapped.This was the main reason why it had fallen in the 4th quarter.
Market experts also mention that average cost of iron ore (delivered to JSW Ispat, Dolvi) would not be less than Rs 4,500-4,800/t (Fe 63% Fines, Incld Royalty).
Note: Estimated Figures.
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