NMDC’s price cut in July’15 has led to increase in JSW Steel’s iron ore purchases from Chhattisgarh.
JSW Steel Procured 1.95 MnT in July’15
In comparison to last month, iron ore purchases of JSW Steel from Chhattisgarh and Karnataka have witnessed an increase in July’15. NMDC had cuts its iron ore fines prices by 15% for July deliveries. JSW Steel procured around 20,000 MT from NMDC (C.G.) in June’15, which has increased to 260,000 MT in July, according to data recorded by railway movement.
Iron ore import by JSW Steel remained at levels similar to June’15 and stood at 160,000 MT. Price cut in domestic market has made domestic iron ore prices competitive to the imported ones.
Talking about Q1 FY16, JSW Steel procured 4,700,000 MT of iron ore. Out of the total sourced quantity, the largest share (84%) was from Karnataka e-auctions followed by imports (13%). The remaining quantity of iron ore was bought from NMDC (C.G.).
JSW Steel Iron Ore Sourcing
| Particulars | Q1 FY16 | July’15* |
| Karnataka | 3.94 | 1.53 |
| Chhattisgarh | 0.16 | 0.26 |
| Imports | 0.60 | 0.16 |
| Odisha & Jharkhand | Nil | Nil |
| Total | 4.70 | 1.95 |
Qty in MnT
Provisional data
*till 28 July’15
Source: SteelMint Research, Customs, DMG, Railways
JSW Steel released its results for Q1 FY16 today. As per the results, the company achieved highest ever quarterly crude steel production & sales in quater ended June’15. Crude steel production & sales stood at 3.40 MnT & 3.11 MnT respectively. The steel maker plans to raise its production to 13.4 MnT in this fiscal.
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