Iron ore sourcing of 12 major sponge plants in India has remained stable on monthly premises in Jul’16. They sourced 2.31 MnT iron ore in Jul’16 compared to 2.42 MnT in Jun’16.
India’s sponge iron capacity is 47 MnT in FY16. Out of which top sponge makers contribute the major part in India’s sponge iron production. SteelMint has tried to analyze iron ore sourcing pattern of India’s major sponge producers whose combined capacity is about 35% of India’s total sponge producing capacity.
Rashmi Metaliks’ had doubled its iron ore procurement in Jul’16 and sourced 0.23 MnT iron ore last month. The sponge manufacturer has concluded a pellet export deal of around 50,000-60,000 MT to China.
Essar Steel’s iron ore procurement moved up by 5% M-o-M in Jul’16. It sourced 0.88 MnT in Jul’16 against 0.84 MnT in Jun’16. Following this, its pellet and DRI production has also moved up. Significant increase in its coastal pellet movement to its steel plant in Hazira was noticed in Jul’16.
BMM Ispat’s iron ore sourcing moved up by 4% M-o-M and procured 0.11 MnT fines via Karnataka e-auctions.
JSPL’s iron ore sourcing fell by about 18% M-o-M to 0.63 MnT. Other major sponge plants iron ore sourcing was as follows: Usha Martin – 0.1 MnT and Shyam Group – 0.12 MnT.
12 Major sponge plants iron ore sourcing: Jun’16 vs Jul’16
|
Plant Name |
Jun’16 | Jul’16 |
Change (%) |
| Essar Steel India | 840,504 | 880,721 | +4.78 |
| Jindal Steel & Power | 761,328 | 627,520 | -17.58 |
| Rashmi Metaliks | 133,578 | 230,608 | +72.64 |
| Usha Martin | 138,145 | 100,100 | -27.54 |
| Monnet Ispat & Energy* | 54,693 | 69,737 | +27.51 |
| Adhunik Group | 63,680 | 78,766 | +23.69 |
| BMM Ispat | 108,000 | 112,000 | +3.70 |
| Godawari Power & Ispat* | – | – | – |
| Prakash Industries | 69,937 | 56,806 | -18.78 |
| Rungta Mines | 114,726 | – | – |
| Sarda Energy & Minerals* | – | 34,558 | – |
| Shyam Group | 137,501 | 117,022 | -14.89 |
| Total | 2,422,092 | 2,307,838 | -4.72 |
*It does not include procurement from their respective captive mines
Qty in MT
Provisional Data
Source: SteelMint Research
Indian sponge prices remained stable in Jul’16 – Monthly average prices in Indian sponge market remained firm in Jul’16 and sponge makers did not reduce their offers further amid stability in iron ore prices and good demand at the quoted offers.
Leave a Reply