So far in this fiscal (till Oct’16) the steel maker has procured 16.3 MnT iron ore against 11.5 MnT in the same period last fiscal.
India’s largest private sector steel making company – JSW Steel having installed steel capacity of 18 MnT pa has reduced its iron ore sourcing by 14% M-o-M in Oct’16. The steel maker sourced 2.21 MnT iron ore last month compared to 2.58 MnT in Sept’16.
Sourcing from Odisha moves up by 26% M-o-M – JSW Steel procured 0.34 MnT iron ore from Odisha based merchant mines (majorly Rungta Mines) in Oct’16 compared to 0.27 MnT in Sept’16. Rungta Mines had raised fines (Fe 63%) price in beginning of Oct’16 to INR 1,750/MT (loaded to wagons & including Royalty, DMF & NMET). The steel maker increased its iron ore sourcing from Odisha for its Dolvi and Salem plants while reduced for its Vijayanagar plant.
Procured 42 rakes from NMDC (C.G.) – The steel giant sourced 42 rakes of iron ore from NMDC (C.G.) mines for its Dolvi plant in Oct’16 compared to 33 rakes in Sept’16. NMDC had increased fines (Fe 64%) prices by INR 300/MT Oct’16 deliveries to INR 1,760/MT (FoR prices excluding Royalty, DMF & NMET).
Sourcing from Karnataka e-auctions down by 25% M-o-M – JSW Steel procured 1.34 MnT iron ore via Oct’16 Karnataka e-auctions. It sourced fines (Fe 61.4%) at bid price of INR 1,904/MT and lump (Fe 62.7%) at bid price of INR 2,205/MT. (Grade & basic prices mentioned are weighted average).
Plant-wise JSW Steel’s iron ore sourcing: Sept’16 vs Oct’16
| Plant Name | Oct’16 | Sept’16 |
| JSW Steel (Vijayanagar) | 1,435,986 | 1,974,314 |
| Karnataka | 1,273,500 | 1,772,000 |
| Odisha | 127,836 | 140,714 |
| Jharkhand | 34,650 | 61,600 |
| JSW Steel (Dolvi) | 607,215 | 534,334 |
| Import | 331,160 | 333,730 |
| Chhattisgarh | 161,700 | 127,050 |
| Odisha | 114,355 | 73,554 |
| JSW Steel (Salem) | 167,897 | 73,422 |
| Odisha | 99,897 | 53,422 |
| Karnataka | 68,000 | 20,000 |
| Grand Total | 2,211,098 | 2,582,070 |
Qty in MT
Provisional data,
Source: SteelMint Research, Customs, Karnataka DMG, Railways
Imported two iron ore vessels for JSW Steel, Dolvi in Oct’16 – In Oct’16, JSW Steel imported two iron ore vessels carrying 166,400 MT Brazilian Carajas fines and 164,760 MT pellet feed from Brazil for its Dolvi plant. JSW Steel’s imports remained stable on monthly premises.
Iron ore sourcing from Jharkhand reduces to half in Oct’16 – The steel maker sourced 0.03 MnT iron ore for its Vijayanagar plant from Jharkhand in Oct’16 against 0.06 MnT in sept’16.
The steel maker did not participate in the two Goa e-auction conducted in the month of Oct’16 as majority of the lots offered comprised of ROM.
From Apr’16-Oct’16 the steel maker has procured 16.3 MnT iron ore, up by 42% Y-o-Y.
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