JSW Steel, India’s leading steelmaker, procures iron ore majorly from Odisha, Karnataka, Chhattisgarh, Jharkhand, Goa and via imports. The steelmaker procured 2.03 MnT iron ore from domestic market as well as from imports in Nov’15.
In Nov’15, majority of iron ore had been sourced from Karnataka e-auctions. However, the steelmaker resumes its iron ore imports in Nov’15 after a gap of 3 months and procured 0.14 MnT high grade iron ore in Nov’15.
Iron ore procurement from NMDC Chhattisgarh mines, significantly dropped down by 84%M-o-M. JSW Steel loaded only 13 rakes i.e. 50,050 MT iron ore in Nov’15 against 80 rakes i.e. 308,000 MT in Oct’15. Reasons for lesser procurement by the steelmaker was leftover sufficient inventories from the month of Oct’15.
Iron ore purchases from Karnataka also increased 24% M-o-M in Nov’15. This was due to iron ore offered in the Karnataka e-auctions (by NMDC and private miners) was at much lesser base prices as compared to other states. Also, purchases from Goa-e-auction remained nill starting FY16.
However, imports for JSW Steel which was nill in Oct’15 geared up in Nov’15. The company imported 142,000 MT high grade iron ore concentrate from Brazil. Continues falling global prices had attracted Indian importers to purchase imported ore at cheaper rate. Since beginning of Nov’15 till end, global iron ore prices fell down by USD 6/MT, CFR China.
Meanwhile, purchases from Odisha, Jharkhand also continued to remain null.
| Particular | Oct’15 | Nov’15 |
| Chhattisgarh | 0.30 | 0.05 |
| Karnataka | 1.48 | 1.84 |
| Goa | Nil | Nil |
| Odisha & Jharkhand | Nil | Nil |
| Imports | Nil | 0.14 |
| Total | 1.78 | 2.03 |
Qty in MnT
Provisional data
Source: SteelMint Research, Customs, DMG, Railways
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