India: JSW Steel’s Iron Ore Imports Down, Purchases from Karnataka Increase

The steelmaker imported 0.47 MnT iron ore in Jun’18 against 1.35 MnT in the previous month. Sourcing from Karnataka e-auctions has increased post price reduction by NMDC.

JSW Steel – India’s largest steelmaker reduced iron ore import significantly post NMDC Karnataka price reduction in end of Jun’18 and recorded imports at 0.47 MnT, a decrease of 65% on monthly basis against 1.35 MnT in May’18. JSW Steel iron ore sourcing recorded a significant decrease in Jun’18. The iron ore sourcing witnessed at 2.09 MnT, decrease by 30% M-o-M as against 2.98 MnT in May’18.

Out of the total imported quantity in Jun’18, JSW Steel imported 0.36 MnT from Australia (down 67%), and 0.11 MnT from South Africa (up 57%). The company imported 0.36 MnT iron ore at Krishnapatnam port while the remaining imports from Jaigarh port at 0.11 MnT.

Increased purchases from Karnataka in Jun’18 -: JSW Steel has started purchasing iron ore aggressively from NMDC Karnataka post price reduction announcement of around INR 300/MT made by the company on 22nd Jun’18. JSW Steel’s iron ore purchases from Karnataka e-auctions stood at 1.05 MnT in Jun’18 up by 2% M-o-M compared to 1.03 MnT in May’18. Out of 1.05 MnT iron ore sourced by JSW in June, 0.45 MnT was supplied from NMDC. In May’18, JSW had bought 0.06 MnT iron ore from NMDC. Out of 1.05MnT iron ore sourced in Jun’18, 0.70 MnT was fines and remaining 0.35 was lumps.

However, JSW has reduced iron ore imports in Q1FY’19 by 23% to 2.48 MnT against 3.2 MnT in Q4 FY’18.

Sourcing from Odisha remain stable:- The steelmaker procured 0.39 MnT iron ore from Odisha based miners in June’18 as against 0.40 MnT in May. Odisha based merchant miners were giving discounts of INR 200-400/MT on bulk bookings, which was benefitting the big player to take advantage.

Sourcing from NMDC (C.G.) down 6% in Jun’18:- JSW Steel (Dolvi) has procured 48 rakes from NMDC Chhattisgarh mines in Jun’18, down slightly by 6% as against 51 rakes in May’18.
National Mineral Development Corporation (NMDC) has announced price revision on 07th Jul’18. The company has increased prices by INR 140-180/MT. Baila fines and lumps prices have moved up by INR 150/MT and prices of ROM by INR 140/MT. DR-CLO prices have increased by INR 180/MT.

JSW Steel total iron ore procurement fell Q-o-Q in Q1FY’19

JSW has decreased iron ore procurement in Q1FY’19 by 29% from 8.98 MnT in Q4 FY’18 as against 6.97 MnT in Q1 FY’19. JSW has decreased iron ore procurement from Karnataka in Q1FY’19 by 36% to 2.71 MnT as against 4.26 MnT in Q4 FY’18. Iron ore procurement from Odisha merchant has increased by 41% in Q1FY’19 to 1.21 MnT as against 0.86 MnT in Q4 FY’18.

Plant-wise iron ore sourcing pattern of JSW Steel: Jun’18 Vs May ’18

Source: SteelMint
Quantity in MnT
Provisional Data
*Revised Data