JSW Steel, having largest crude steel capacity of 14.3 MnT pa and top Iron ore purchaser at Karnataka e-auctions, has cut down its procurement from Karnataka in Q2 FY15 to 2.5 MnT against 2.9 MnT in Q1 FY15.
The map below shows Q-o-Q comparison of JSW’s Iron ore procurement from Karnataka, which has reduced in Q2 FY15 because of cheaper imports. Supply from domestic market has fallen and prices have increased after closure of 9 mines in Odisha and 11 mines in Jharkhand. The company’s Iron ore purchase from domestic market has fallen to 3.4 MnT in Q2 FY15 against 4.8 MnT in Q1 FY15.
Persistent fall in Chinese spot Iron ore fines (Fe 62%) prices – slipped to 5 years low (USD 77/MT CNF China), has made imports quite economical along with Krishnapatnam, Mangalore and Dharamtar port facilities. However, imports were nil in Q1 FY15.
2 MnT Iron ore was imported last quarter i.e. 1.51 MnT from South Africa (76%), 0.18 MnT from Canada (9%), 0.16 MnT from Brazil (8%) and 0.14 MnT from Mauritania (7%). Considering port-wise, out of 2 MnT, 80% (1.6 MnT) reached to Krishnapatnam port, 12% (0.23 MnT) to Mangalore port and 8% (0.17 MnT) to Jaigarh port .
In Q3 FY15, imports may further beat domestic Iron ore buying as Chinese fines prices are unforeseen to pick up behind low steel demand, stable economy and huge supplies from world’s leading miners. To add, domestic supply shall continue to be short since resumption of non-operational mines in Odisha, Jharkhand and Karnataka has seen no development so far.
SteelMint Monthly Iron Ore Insight
The report covers Iron ore market in Odisha, Jharkhand, Chhattisgarh, Karnataka, Goa & China. It also features domestic as well as overseas Iron Pellet & Mill scale market.
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