Steelmaker procured 19.79 MnT iron ore from Apr-Nov’16 compared to 13.53 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 considerably its iron ore sourcing by 58% M-o-M in Nov’16. The steel maker sourced 3.49 MnT iron ore last month compared to 2.21 MnT in Oct’16.
Sourcing from Odisha moves up by 18% M-o-M – JSW Steel procured 0.4 MnT iron ore from Odisha based merchant mines (majorly Rungta Mines) in Nov’16 compared to 0.34 MnT in Oct’16. Rungta Mines kept fines (Fe 63%) price unchanged in Nov’16 at INR 1,750/MT (loaded to wagons & including Royalty, DMF & NMET). The steel maker increased its iron ore sourcing from Odisha for its Dolvi plant while reduced for its Salem & Vijayanagar plants.
Procurement from NMDC (C.G.) remains stable- The steel giant sourced 42 rakes of iron ore from NMDC (C.G.) mines for its Dolvi plant in Nov’16. NMDC had kept fines prices unmoved in Nov’16, however towards the end of Nov’16, the miner raised fines prices by INR 100/MT to INR 1,860/MT (FoR prices, Royalty, DMF & other taxes extra).
Sourcing from Karnataka e-auctions increased by 81% M-o-M – JSW Steel procured 2.43 MnT iron ore via Nov’16 Karnataka e-auctions compared to 1.34 MnT in Oct’16. Out of 2.43 MnT iron ore sourced in Nov’16, 1.19 MnT iron ore was procured from NMDC and remaining from private miners. It sourced fines (Fe 59.5%) at bid price of INR 1,638/MT and lump (Fe 61.8%) at bid price of INR 2,147/MT. (Grade & basic prices mentioned are weighted average).
Plant-wise JSW Steel’s iron ore sourcing: Oct’16 vs Nov’16
|
Plant Name |
Nov’16 |
Oct’16 |
| JSW Steel (Vijayanagar) | 2,437,333 | 1,435,986 |
| Karnataka | 2,370,000 | 1,273,500 |
| Odisha | 67,333 | 127,836 |
| Jharkhand | – | 34,650 |
| JSW Steel (Dolvi Works) | 945,997 | 607,215 |
| Import | 498,700 | 331,160 |
| Odisha | 285,597 | 114,355 |
| Chhattisgarh | 161,700 | 161,700 |
| JSW Steel (Salem Works) | 105,974 | 167,897 |
| Karnataka | 60,000 | 68,000 |
| Odisha | 45,974 | 99,897 |
| Grand Total | 3,489,304 | 2,211,098 |
Qty in MT
Provisional data,
Source: SteelMint Research, Customs, Karnataka DMG, Railways
JSW Steel’s imports up in Nov’16 – JSW imported 0.49 MnT Brazillian fines in Nov’16 at Jaigarh port. In Oct’16, JSW Steel imported 0.33 MnT iron ore. Thus steel maker’s imports have gone up by 48% M-o-M. It is to be noted that the steel maker has been importing hedged cargo primarily pellet feed and fines in this fiscal.
Sourcing from Jharkhand & Goa remained nil.
From Apr-Nov’16, the steel maker procured 19.79 MnT iron ore, up by 46% Y-o-Y in the same period last fiscal.
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