India: JSW Steel’s Iron Ore Sourcing Down 16% in Apr’17

JSW Steel is India’s largest steel maker with crude steel production of 15.8 MnT in FY17. The steel maker has reported drop of 11% M-o-M in its monthly crude steel output. In Apr’17, its crude steel output stood at 1.288 MnT against 1.45 MnT in Mar’17.

The steel maker has reduced its iron ore sourcing by 16% M-o-M in Apr’17. The steel giant procured 2.38 MnT iron ore in Apr’17 against 2.83 MnT in Mar’17.

Purchases from Karnataka down 30% in Apr’17 – JSW Steel procured 1.32 MnT iron ore from Karnataka e-auctions in Apr’17 compared to 1.89 MnT in Mar’17. Out of 1.32 MnT iron ore procured in Apr’17, share of NMDC was 77% and remaining was of private miners (13%) and Mysore Minerals (10%). Out of 1.32 MnT iron ore sourced, 0.9 MnT iron ore sourced was fines and 0.42 MnT was lump.

Single import vessel in Apr’17 – JSW Steel imported 0.16 MnT iron ore in Apr’17 against 0.34 MnT in Mar’17. The steel maker imported 0.16 MnT iron ore (hedged cargo) from Brazil in Feb’17 at Jaigarh port for its Dolvi plant via vessel name “Navios Arora II”.

Sourcing from NMDC (C.G.) increases in Apr’17 – JSW Steel procured 66 rakes from NMDC Chhattisgarh mines in Apr’17 against 21 rakes in Mar’17. It is to be noted that NMDC (C.G.) rolled over iron ore prices for Apr’17 deliveries.

Iron ore procurement from Odisha merchant mines up 12% M-o-M- The steel making company raised iron ore sourcing from 0.49 MnT in Mar’17 to 0.55 MnT in Apr’17. Odisha based merchant miners kept iron ore unchanged in Apr’17 and were seen giving discounts on bulk purchases.

Steel maker’s iron ore procurement from Jharkhand has increased from 0.02 MnT in Mar’17 to 0.09 MnT in Apr’17

Plant-wise iron ore sourcing pattern of JSW Steel: Apr’17 vs Mar’17

Qty in MT
Provisional data,
Source: SteelMint Research, Customs, Karnataka DMG, Railways