India’s 12 major sponge iron plants iron ore sourcing fell last month. They sourced 3.46 MnT iron ore in Dec’16 compared to 3.57 MnT in Nov’16, down 3% 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 increased by 12% M-o-M to 1.24 MnT in Dec’16. It sourced 1.14 MnT iron ore from domestic market (NMDC Chhattisgarh and Odisha miners) and imported a vessel of 96,640 MT pellets from Bahrain in Dec’16.
JSPL’s iron ore sourcing fell 23% M-o-M in Dec’16 from 1.02 MnT in Nov’16 to 0.8 MnT in Dec’16.
West Bengal based Rashmi Metaliks’ iron ore procurement remained stable at 0.49 MnT in Dec’16.
Iron ore sourcing of other major sponge makers in Dec’16 remained as follows: BMM Ispat – 0.09 MnT (down 38% M-o-M), Shyam Group – 0.13 MnT (down 13% M-o-M) and Usha Martin – 0.12 MnT (down 20% M-o-M).
Iron ore sourcing of major sponge plants: Dec’16 vs Nov’16
| Plant Name | Dec’16 | Nov’16 | M-o-M (%) |
| Adhunik Group | 105,744 | 152,128 | -30.49 |
| BMM Ispat | 88,000 | 144,000 | -38.89 |
| Essar Steel India | 1,235,606 | 1,101,251 | +12.2 |
| Godawari Power & Ispat | 3,921 | 11,481 | -65.85 |
| Jindal Steel & Power | 791,665 | 1,022,550 | -22.58 |
| Monnet Ispat & Energy | 102,817 | 105,154 | -2.22 |
| Prakash Industries | 92,621 | 61,025 | +51.78 |
| Rashmi Metaliks | 490,902 | 491,906 | -0.2 |
| Rungta Mines | 228,080 | 117,914 | +93.43 |
| Sarda Energy & Minerals | 71,327 | 65,034 | +9.68 |
| Shyam Group | 131,648 | 151,617 | -13.17 |
| Usha Martin | 119,350 | 149,621 | -20.23 |
| Grand Total | 3,461,681 | 3,573,681 | -3.13 |
*It does not include procurement from their respective captive mines
Qty in MT
Provisional Data
Source: SteelMint Research
Indian sponge iron market scenario in Dec’16 – Indian sponge iron prices inched up by 3-6% M-o-M in Dec’16 across all major markets in India except southern India. Sponge manufacturers remained optimistic over stability in Odisha iron ore prices, thus their profit margins were quite good.
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