India: JSW Steel’s Iron Ore Sourcing Down 2% Q-o-Q in Q1 FY18

JSW Steel is India’s largest steel maker with crude steel production of 15.8 MnT in FY17. The steel maker has reported a 5% drop Q-o-Q in its crude steel output. It was down from 4.1 MnT in Q4 FY17 to 3.91 MnT in Q1 FY18.

The steel maker has decreased its iron ore sourcing by 2% Q-o-Q for Q1 in FY-18. The steel giant procured 7.9 MnT iron ore in the first quarter of FY18 against 8.1 MnT in Q4 FY17. However the sourcing was up 24% Y-o-Y when compared with Q-1 FY’17 which was 6.34 MnT then.

Purchases from Karnataka Down 11% Q-o-Q – JSW Steel procured 4.9 MnT iron ore from Karnataka e-auctions in Q-1 FY’18 compared to 5.5 MnT in Q4-FY’17 which was down 11% Q-o-Q. However the sourcing was up 16% Y-o-Y when compared with Q-1 FY’17 which was 4.2 MnT then.

Iron Ore Procurement from Chhattisgarh Up 26% Q-o-Q – JSW Steel raised its iron ore sourcing from Chhattisgarh from 0.49 MnT in Q4-FY’17 to 0.61 MnT in Q1-FY’18 which was up 26% Q-o-Q. The sourcing was up 118% Y-o-Y when compared with Q-1 FY’17 which was .28 MnT then.

Iron Ore Procurement from Odisha Merchant Mines Up 52% Q-o-Q- The steel making company raised iron ore sourcing from 1.2 MnT in Q4-FY’17 to 1.8 MnT in Q1-FY’18. The sourcing was up 69% Y-o-Y when compared with Q-1 FY’17 which was 1 MnT then.

Jharkhand: Steel maker’s iron ore procurement from Jharkhand was up 111% at 0.22 MnT in Q1-FY’18 against 0.10 MnT in as well as in Q4-FY’17. No sourcing was done from Jharkhand by the steel maker Q-1 FY’17.

Two import vessels in Q1 FY’18 – JSW Steel imported 0.33 MnT iron ore in Q1’18. Compared with the imports the steelmaker have done in last quarter i.e. Q4-FY’17 the imports were down by 60% Q-o-Q which were at 0.84 MnT with 5 vessels carrying 0.84 MnT iron ore then. All the imports were from Brazil.

JSW Steel’s Iron Ore Sourcing in Q1 FY18

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