JSW Steel’s Iron Ore Sourcing Up 41% M-o-M in Jan’17

India’s largest steel producer – JSW Steel increased its iron ore sourcing by 41% M-o-M from 2.07 MnT in Dec’16 to 2.92 MnT. In line with increased iron ore procurement, the company reported highest ever monthly crude steel output of 1.385 MnT in Jan’17.

Purchases from Karnataka up 49% in Jan’17 – JSW Steel procured 1.95 MnT iron ore from Karnataka e-auctions in Jan’17 compared to 1.31 MnT in Dec’16. Out of 1.95 MnT iron ore procured in Jan’17, share of NMDC was 51% and remaining was of private miners (38%) and Mysore Minerals (11%). 1.56 MnT iron ore sourced was fines and 0.39 MnT was lump.

Iron ore imports of JSW Steel doubled in Jan’17 – JSW Steel imported 0.34 MnT iron ore in Jan’17 against 0.17 MnT in Dec’16. 0.34 MnT iron ore imported by the steel maker in Jan’17 was from Brazil and used at for its Dolvi plant.

Sourcing from NMDC (C.G.) remained stable – JSW Steel procured 57 rakes from NMDC Chhattisgarh mines in Jan’17 against 55 rakes in Dec’16. On monthly premises, steel maker’s iron ore sourcing has remained stable.

Iron ore procurement from Odisha merchant mines down 8% M-o-M – The steel making company reduced iron ore sourcing from Odisha mines to 0.34 MnT in Jan’17. In Dec’16 it sourced 0.37 MnT iron ore.

Plant-wise iron ore sourcing pattern of JSW Steel: Jan’17 vs Dec’16

Qty in MT
Provisional data,
Source: SteelMint Research, Customs, Karnataka DMG, Railways

So far in this fiscal (till Jan’17), JSW Steel procured 24.7 MnT iron ore compared to 16.7 MnT iron ore in the same period last fiscal, up 48% Y-o-Y.