India: Iron Ore Sourcing of Major Sponge Plants Down 7% in Feb’17

India’s 12 major sponge iron plants iron ore sourcing fell last month. They sourced 2.47 MnT iron ore in Feb’17 compared to 2.66 MnT in Jan’17, down 7% M-o-M.

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 share is about 35% of India’s total sponge production capacity.

Essar Steel’s iron ore/pellet sourcing fell 7% M-o-M to 0.92 MnT in Feb’17. It procured entire quantity from domestic sources. Its iron ore procurement from both NMDC (Chhattisgarh) and Odisha miners have witnessed reduction in Feb’17.

JSPL’s iron ore sourcing increased 11% M-o-M in Feb’17 from 0.61 MnT in Jan’17 to 0.68 MnT in Feb’17.

West Bengal based Rashmi Metaliks’ iron ore procurement dropped 22% M-o-M to 0.21 MnT in Feb’17.

Iron ore sourcing of other major sponge makers in Feb’17 remained as follows: BMM Ispat – 0.06 MnT (down 57% M-o-M), Shyam Group – 0.17 MnT (down 29% M-o-M) and Usha Martin has nearly doubled its iron ore sourcing to 0.12 MnT in Feb’17.

Iron ore sourcing of major sponge plants: Jan’17 vs Feb’17

*It does not include procurement from their respective captive mines
Qty in MT
Provisional Data
Source: SteelMint Research

Indian sponge iron market in Feb’17 – Indian sponge iron prices exhibited mixed trends in Feb’17. Monthly average sponge prices in central & east India increased up to INR 450/MT however in southern India it declined up to INR 450/MT.