After a gap of 2 months, JSW Steel is seen importing iron ore again. As per customs data, JSW Steel is about to import 0.14 MnT (142,000 MT) iron ore from Brazil at Jaigarh Port via vessel named “MV K Ambition”. The vessel is expected to arrive at port on 06 Nov’15.
Industry sources shared that the company is importing high grade concentrate from Brazil (Fe 67%) which would be used in Dolvi plant. Unavailability of high grade concentrate in India has led the steel maker to go for imports. Company is expected to use blend of imported ore (15% of requirement) and domestic ore (85% of requirement) to improve the utilization.
There are chances that few more shipments might follow this one in the near term. Prices of iron ore concentrate (Fe 66%) are around USD 62-64/MT, CFR India for Nov’15 shipments.
JSW Steel, Dolvi is undergoing through a capacity expansion from 3.3 MnT pa to 5 MnT pa which is likely to be completed by end of this fiscal. And use of high grade ore will further improve the efficiency of their steel plant.
JSW Steel was the largest iron ore importer in last fiscal and imported 9.14 MnT iron ore. But with increased iron ore availability and price cut in domestic iron ore prices it shifted from imports to domestic purchases.
Talking about this fiscal, the steel giant has imported 0.76 MnT iron ore from Apr’15 to July’15.
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