Indian steel major – JSW Steel has sourced a total of 1.44 mn t iron ore from the merchant market in Jan’21. The sourcing decreased by 34% as against 2.17 mn t in Dec’20. The steelmaker has increased captive iron ore sourcing hence reduced sourcing from merchant miners. The figures exclude captive iron ore sourcing.
Sourcing from Odisha down 45% in Jan’21
The steelmaker procured 23,392 t of iron ore from Odisha based miners in Jan’21, down 45% as compared to 42,177 t in Dec’20.
Sourcing from NMDC (C.G.) dropped 17% in Jan’21
JSW Steel (Dolvi) sourcing from NMDC fell by 17% to 242,550 t as compared with 292,600 t in Dec’20. NMDC had raised prices for Jan’21, the price of Baila lump was increased by INR 500/t ($7), DR-CLO by INR 580/t ($8) and that of fines by INR 200/t ($3).
JSW iron ore purchases from Karnataka e-auction fell 36% m-o-m
In the month of Jan’21, the company sourced around 1.18 mn t iron ore from Karnataka e-auction, down 36% against 1.84 mn t in Dec’20. On the other hand, company’s captive production from Karnataka mines picked up to 0.52 mn t as compared with 0.49 mn t in Dec’20.
Out of 1.18 mn t iron ore sourced by JSW in Jan’21, NMDC supplied 0.45 mn t, down by 17% as compared to 0.54 mn t last month (Dec’20). It contributed around 38% of total JSW sourcing. Vedanta remained the second largest supplier at 0.32 mn t. JSW iron ore sourcing from other private mines stood at 0.41 mn t.
JSW iron ore imports recorded nil in Jan’21
JSW Steel imports stood nil for the month of Jan’21. JSW Steel imported 79,540 t of iron ore from Finland in Nov ’20. Considering sharp hike in global iron ore prices, iron ore imports seem less viable now. The average iron ore (Fe 62%) fines price increased to $168/t, CNF China in Jan’21 as against $155/t, CNF China in Dec’20.
JSW Steel Iron Ore Sourcing in Jan’21 & Dec’20
Source: SteelMint Research
Quantity in t
Excludes captive iron ore sourcing
Provisional Data
JSW’s steel capacity utilization picked up
JSW Steel’s crude steel output was recorded at 1.43 mn t in Jan’21, against 1.41 mn t in Dec ’20. JSW has reported an increase in capacity utilization to 96% in Jan ’21, as per the company’s recent press release in BSE. The same stood at 91% in Q3 FY ’21.
Outlook:JSW expects to produce around 7-8 mn t of iron ore from nine captive mines in Karnataka in FY’21, which will be used at its Vijayanagar plant. Adding up output from recently won mines in Odisha, the company plans to have captive iron ore production around 21 mn t in FY21.
Steel major JSW Ltd. has emerged as India’s second largest iron ore producer in Dec’20 recording monthly production at 3.15 mn t, as per SteelMint data. Posting growth in production against 2.68 mn t in Nov’20, JSW produced 2.66 mn t from its mines in Odisha and the rest from 7 operational mines in Karnataka.
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