India’s second largest privately owned steelmaker, JSW Steel, with an annual installed capacity of 14.3 MnT pa source iron ore for its various steel plant from Chhattisgarh, Karnataka, Goa, Odisha and via imports. The steelmaker had produced around 11.2 MnT crude steel in FY16 (till Feb’16) and is projected to produce around 12.2 MnT in FY16 against 12.36 MnT in FY15.
In FY16, the steelmaker sources majority of the material domestically. Major requirement of iron ore is been fulfilled by Karnataka e-auctions. Karnataka contributed around 85% of its total requirement, followed by Chhattisgarh (6.3%), Odisha (0.8%) and imports (7.2%).
Iron ore sourcing via imports had been drastically dropped down by 83% in a year. In FY16, iron ore imports registered at 1.58 MnT which was around 9.13 MnT in FY15. JSW Steel majorly imports fines and concentrate from Brazil and South Korea. Due to restricted domestic supply of iron ore in India in FY15 upon illegal mining in key states, resulted the steelmaker to bank on increased imports. Whereas, in FY16 due to sufficient availability of iron ore within country the steelmaker sourced majority of the material domestically.
JSW Steel Iron Ore Souring Pattern in FY16
| JSW Steel Iron Ore Sourcing in FY16 | |||||||||||||
| Particular | Apr’15 | May’15 | Jun’15 | Jul’15 | Aug’15 | Sep’15 | Oct’15 | Nov’15 | Dec’15 | Jan’16 | Feb’16 | Mar’16 | Total |
| Chhattisgarh | 0.04 | 0.12 | 0.02 | 0.29 | 0.27 | 0.16 | 0.3 | 0.05 | Nil | Nil | Nil | 0.14 | 1.39 |
| Karnataka | 1.12 | 2.19 | 0.62 | 1.71 | 1.32 | 1.1 | 1.48 | 1.84 | 1.69 | 1.05 | 2.33 | 2.21 | 18.66 |
| Goa | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil | 0.05 | Nil | Nil | Nill | 0.05 |
| Odisha | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil | 0.007 | 0.18 | 0.18 |
| Jharkhand | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nill | Nill |
| Imports | 0.09 | 0.35 | 0.16 | 0.16 | Nil | Nil | Nil | 0.14 | Nil | 0.37 | Nil | 0.31 | 1.58 |
| Total | 1.25 | 2.66 | 0.8 | 2.16 | 1.59 | 1.26 | 1.78 | 2.03 | 1.74 | 1.4 | 2.33 | 2.84 | 21.84 |
Qty in MnT
Provisional Data
Source: SteelMint Research, Customs,DMG, Railways
JSW Steel’ s crude steel production in FY16 (till Feb’16)
JSW Steel’s crude steel production has decreased by 3% in FY16 (till Feb’16). Steelmaker produced around 11.28 MnT crude steel in FY16 (till Feb’16) against 11.6 MnT in FY15 (till Feb’15).
The steelmaker has crude steel capacity of 14.3 MnT pa. But, in Aug’15 and Nov’15, the company’s expansion plan for its Vijayanagar Steel Plant & Salem Steel Plant respectively have enhanced its annual capacity to 18 MnT pa.
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