Advancing towards its targeted crude steel production of 15.75 MnT for FY17, the steel giant procured 11.3 MnT iron ore this fiscal (till Aug’16) registering a growth of 34% Y-o-Y.
JSW Steel has raised its iron ore sourcing from 2.4 MnT in Jul’16 to 2.56 MnT in Aug’16. Thus, witnessing an increase of 7%.
Sourcing from Odisha up by 22% – JSW Steel raised its iron ore sourcing from Odisha in Aug’16. It loaded 146 rakes in Aug’16 compared to 120 rakes in Jul’16. Plant wise share was- Dolvi (75 rakes), Vijayanagar (55 rakes) and Salem (16 rakes). Significant increase in JSW Steel’s Vijayanagar plants’ sourcing was seen. It procured 55 rakes from Odisha in Aug’16 compared to 30 rakes in Jul’16.
Sourcing from Jharkhand doubled in Aug’16 – JSW Steel procured 37 rakes from Rungta Mines in Jharkhand in Aug’16 compared to 19 rakes in Jul’16 for its Vijayanagar plant.
Procured 48 rakes from NMDC (Chhattisgarh) – In Aug’16, JSW Steel, procured 46 rakes from NMDC (Chhattisgarh) for its Dolvi plant and 2 rakes for its Vijayanagar plant. The steel maker had procured 65 rakes from NMDC in Jul’16.
Karnataka iron ore purchases fall by 14% M-o-M – JSW Steel procured 1.26 MnT iron ore (0.85 MnT fines and 0.41 MnT lump) from Karnataka e-auctions in Aug’16 against 1.46 MnT in Jul’16. Out of this, the share of Vijayanagar plant was 96% and the remaining share was for its Salem plant.
Aug’16 observed three import shipments of JSW Steel – JSW Steel observed three iron ore import shipments from South Africa and Brazil. Two import vessels of 0.25 MnT iron ore was used up at its Dolvi plant and the another shipment of 0.17 MnT was diverted for its Vijayanagar plant.
JSW Steel’s iron ore sourcing and crude steel production in FY17
| Particulars | Qty in MnT | ||||
| Apr’16 | May’16 | Jun’16 | Jul’16 | Aug’16 | |
| Iron ore sourcing | |||||
| 1. Domestic | 1.84 | 1.68 | 2.02 | 2.24 | 2.14 |
| a. Odisha | 0.4 | 0.24 | 0.4 | 0.46 | 0.56 |
| b. Chhattisgarh | 0.16 | 0.12 | Nil | 0.25 | 0.18 |
| c. Karnataka | 1.28 | 1.32 | 1.62 | 1.46 | 1.26 |
| d. Jharkhand | Nil | Nil | Nil | 0.07 | 0.14 |
| e. Goa | Nil | Nil | Nil | Nil | Nil |
| 2. Imports | 0.47 | 0.16 | 0.17 | 0.16 | 0.42 |
| Total (1+2) | 2.31 | 1.84 | 2.19 | 2.4 | 2.56 |
| Production in MnT | |||||
| Crude steel | 3.87 | 1.34 | NA | ||
Provisional data
NA-Not Available; Chhattisgarh data for Aug’16 is excluding that of 30 & 31 Aug’16
Source: SteelMint Research, Customs, Karnataka DMG, Railways
JSW Steel increasing iron ore sourcing in line with rising crude steel production
The steel giant has increased its iron ore sourcing in line with its increased crude steel productio.In the month of Jul’16, JSW Steel reported crude steel production of 1.34 MnT, higher by 19% Y-o-Y.
In the first five months of this fiscal, JSW Steel procured 11.3 MnT iron ore compared to 8.46 MnT in the same period last fiscal. Out of 11.3 MnT iron ore procured so far share of Karnataka is 61%, Odisha – 18%, Chhattisgarh – 6%, Jharkhand – 3% and imports – 12%.
Leave a Reply