India’s largest steel producer – JSW Steel raised its iron ore sourcing by 36% Y-o-Y from 21.94 MnT in FY16 to 29.92 MnT in FY17. It is to be noted that the company has achieved 26% Y-o-Y growth in its crude steel output in this fiscal and recorded production of 15.8 MnT in FY17. Thus, the steel maker increased its iron ore procurement considerably in FY17 to achieve 100% of its crude steel production guidance.
Sourcing from Karnataka e-auctions up 3% Y-o-Y – The steel maker procured 19.29 MnT iron ore via Karnataka e-auctions in FY17 compared to 18.69 MnT in previous fiscal. Out of 19.29 MnT iron ore procured in FY17, 13.4 MnT was fines, 5.78 MnT was lump and rest was ROM. Out of the total quantity sourced, 52% was from NMDC, 18% from Mysore Minerals and rest from private miners.
Procurement from NMDC (Chhattisgarh) up by 33% in FY17 – JSW Steel procured 1.87 MnT iron ore from NMDC’s Bailadila mines in Chhattisgarh compared to 1.41 MnT in previous fiscal.
Sourcing from Odisha based merchant miners increased significantly in FY17 – JSW Steel procured 4.77 MnT iron ore from Odisha based merchant miners in FY17 compared to 0.2 MnT in FY16. Cheaper and ample availability of iron ore from Odisha resulted in increased iron ore procurement. Also miners were heard giving discounts on bulk purchases making it more attractive. In FY17, JSW Steel sourced iron ore from Odisha for all its 3 plants.
Iron ore imports at 3.55 MnT in FY17 – The steel giant imported 3.55 MnT iron ore in FY17 against 1.59 MnT in the previous fiscal. Out of 3.55 MnT iron ore imported in FY17, 88% was from Brazil and rest from South Africa. Entire quantity was imported at Jaigarh port for its Dolvi plant except single shipment of 0.12 MnT which was diverted to Krishnapatnam port. It imported Brazilian Carajas fines and pellet feed from Anglo America (South Africa) as hedged cargo in FY17.
Apart from these, the steel maker also sourced 0.4 MnT iron ore from Jharkhand in FY17 which was nil in FY16. However, procurement from Goa e-auctions remained nil in FY17.
Plant-wise iron ore sourcing of JSW Steel : FY17 vs FY16
|
Plant Name |
FY17 |
FY16 |
|
JSW Steel (Vijayanagar) |
20,477,174 |
18,220,000 |
| Karnataka | 18,658,500 | 18,220,000 |
| Odisha | 1,308,963 | – |
| Import | 167,000 | – |
| Jharkhand | 334,950 | – |
| Chhattisgarh | 7,700 | – |
| JSW Steel (Dolvi Works) | 8,226,559 | 3,186,801 |
| Import | 3,384,580 | 1,527,770 |
| Odisha | 2,886,179 | 199,931 |
| Chhattisgarh | 1,867,250 | 1,409,100 |
| Karnataka | – | – |
| Jharkhand | 88,550 | – |
| Goa | – | 50,000 |
| JSW Steel (Salem Works) | 1,216,038 | 537,500 |
| Karnataka | 636,000 | 468,000 |
| Odisha | 580,038 | – |
| Import | – | 69,500 |
| Grand Total | 29,919,770 | 21,944,301 |
Fig in MT
Provisional data
Source: SteelMint Research, Customs, Karnataka DMG, Railways
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