- JSW Steel’s domestic Iron Ore off-take at 4.75 MnT in Q1 FY15
- 1,69,000 MT imported Iron ore vessel (from S. Africa) to be discharged at Krishnapatnam Port in July
- Off take from Odisha/Jharkhand dropped by 30% due to mining restrictions
- JSW Steels cut down on sub grade ROM from Karnataka’s E-auction
JSW Steel, India’s largest private sector steel producer with an annual capacity of 14.3 MnT, has been consistent with Iron ore sourcing in Q1 FY15. Total Iron ore purchased during April-June, 2014 is at about 4.75 MnT. Company had managed to operate its plant at 85% in FY14.
With Iron ore mining in Karnataka reviving at a slow pace and mining restrictions in Odisha, the company has to go for imports. A capesize vessel of 169,000 MT Iron ore is expected at Krishnapatnam port in first week of July. Cargo has been heard bought from Anglo American’s Kumba Mines based in South Africa.
For the first time, company participated in Goa’s e-auction and bought a small quantity of 11,800 MT.
Company’s 100% Iron ore movement is through railways from Odisha, Jharkhand, Chhattisgarh and partial in Karnataka.
No. of Rakes Loaded
|
Unload Destination |
Load States |
||||
|
Karnataka |
Chhattisgarh |
Odisha/Jharkhand |
Goa |
Total |
|
|
Jindal Vijayanagar Steel, JSW Torngalu |
600 |
88 |
99 |
1 |
788 |
|
Jindal Steel & Works, Dolvi |
– |
161 |
97 |
– |
258 |
|
JSW Steel, Salem |
4 |
18 |
27 |
1 |
50 |
|
Total |
604 |
267 |
223 |
2 |
1,096 |
One rake carries around 3,850 MT of Iron ore
Odisha/Jharkhand
JSW Steel has sourced around 0.85 MnT Iron ore from Odisha/Jharkhand in Q1 FY15 against 1.2 MnT in Q4 FY14 owing to mining suspension in Odisha. Landed cost of Iron ore would be around INR 5,300-5,400/MT for Fe 63% Iron fines considering fines prices at around INR 2,900-3,000/MT (loaded to wagons, including royalty).
Chhattisgarh
Company sourced around 1 MnT of Iron ore from NMDC, Chhattisgarh in Q1 FY15, which was largely taken to its Dolvi plant. Landed cost of NMDC’s Iron ore fines would be around NR 5,500-5,700/MT (Fe 64%, including royalty).
Karnataka
JSW Steel bought around 2.9 MnT of Iron ore from Karnataka’s e-auction, which was about 4.38 MnT in previous quarter (Q4 FY14). Company had significantly cut down on sub grade ore (50% Fe).
Karnataka E-auction April-June, 2014
|
Material Type |
Quantity |
W.A Grade |
W.A Bid Price |
|
Fines |
2,036,000 |
59 |
2,296 |
|
Lumps |
860,000 |
62 |
3,824 |
|
ROM |
12,000 |
52 |
1,683 |
|
Total |
2,908,000 |
|
|
Karnataka E-auction January-March, 2014
|
Material Type |
Quantity |
W.A Grade |
W.A Bid Price |
|
Fines |
1,384,000 |
57 |
1,960 |
|
Lumps |
1,024,000 |
62 |
3,844 |
|
ROM |
1,980,000 |
50 |
1,428 |
|
Total |
4,388,000 |
|
|
W.A- Weighted Average
Qty in MT
Prices in INR/MT, FDT and Royalty of 22% Extra
Source: SteelMint Research
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