JSW Steel Increases Iron Ore Sourcing from Odisha to Feed Incremental Capacity

India’s largest private sector steel making company – JSW Steel has raised sourcing from Odisha merchant mines to feed its incremental capacity.

Earlier the steel maker was sourcing iron ore from Odisha for its Dolvi plant but now it is seen sourcing ore from Odisha for its Vijayanagar and Salem plants as well.

JSW Steel has upgraded its installed crude steel capacity from 14.3 MnT pa to 18 MnT pa by end of FY16. Thus the steel biggy needs around 30-31 MnT iron ore annually. The steel giant aims to produce 15.75 MnT crude steel in FY17. Hence in order to meet the growing requirement of iron ore the steel maker has raised its sourcing from Odisha

JSW Steel (Vijayanagar) sourced 31 rakes from Odisha in May’16

JSW Steel (Vijayanagar) procured 31 rakes of iron ore fines (Fe 63%) from Odisha based merchant mines (primarily Rungta and Serajuddin Mines) last month.

In Jun’16 (till 15 Jun’16) the steel biggy has sourced 17 rakes from Odisha for its Vijayanagar plant.

JSW Steel moves iron ore procured from Odisha mines to Dhamra port via rake movement (freight is around INR 700/MT). Then it moves the material from Dhamra port to Krishnapatnam port via coastal movement following which the material is transferred to its Vijayanagar plant through rake movement.

Currently fines (Fe 63%) prices in Odisha are at INR 1,550/MT (loaded to wagons). Considering coastal freight, port charges and rail freight rates the landed cost of fines to JSW Vijaynagar will stand at around INR 3,900-4,000/MT.

6 rakes of iron ore procured in 1st half of Jun’16 for JSW Steel (Salem)

JSW (Salem) has procured 6 rakes of iron ore from Odisha mines till 15th Jun’16. The material has been moved to Dhamra port from where it will be moved to Karaikal port via coastal movement from where it will be taken to its Salem plant.

Apart from this JSW Steel is presently sourcing ore from Karnataka e-auctions and NMDC’s Bailadila mines in Chhattisgarh. Also the steel maker has imported 170,000 MT Carajas fines from Brazil at Jaigarh port for its Dolvi plant on 10 Jun’16.