JSW Steel, India’s largest private steelmaker with an annual crude steel capacity of 14.3 MnT, has been quite aggressive for sourcing Iron ore this fiscal year. In order to achieve 90% utilization, the company has already sourced about 22.8 MnT Iron ore during FY15 (Apr-Feb’15).
This fiscal year, the company has imported 39.4% of its total Iron ore requirement and 48% being sourced from Goa & Karnataka’s e-auctions and rest 12.6 from other states like Odisha, Chhattisgarh and Jharkhand.
Domestic Iron ore supply has been restricted in India by curbs on illegal mining in key states, resulting JSW Steel to bank on depressed global Iron ore prices and increase imports.
JSW Steel’s Iron Ore souring Pattern
| Particular | Q1 | Q2 | Q3 | Q4 (Jan-Feb’15) | Total |
| Import | 0 | 2 | 4.39 | 2.6 | 8.99 |
| Auction (Karnataka/Goa) | 2.9 | 3.03 | 3.2 | 1.8 | 10.93 |
| Other States | 1.95 | 0.91 | 0.03 | 0 | 2.89 |
| Total | 4.85 | 5.94 | 7.62 | 4.4 | 22.81 |
Quantity in MnT; Provisional data
Other States: Odisha, Jharkhand, Chhattisgarh
Source: SteelMint Stats, Customs
JSW in line to achieve Crude Steel Target of 12.9 MnT in FY15
JSW’s crude steel production has increased by 5.4% in FY15 (till Jan’15). The company is very close to its FY15 target of 12.9 MnT.
| Financial Year | Apr’14 | May’14 | Jun’14 | Jul’14 | Aug’14 | Sep’14 | Oct’14 | Nov’14 | Dec’14 | Jan’15 | Total |
| FY15 | 0.99 | 1.07 | 1.04 | 1.11 | 1.12 | 1.07 | 1.05 | 1.11 | 1.02 | 1.12 | 10.69 |
| FY14 | 0.87 | 1.01 | 0.98 | 0.99 | 0.99 | 1.00 | 1.06 | 1.07 | 1.06 | 1.11 | 10.14 |
Qty in MnT
Source: JSW Press Release
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