India: JSW Steel’s Iron Ore Sourcing Down Significantly in Sept’17

JSW Steel is India’s largest steel maker with crude steel production of 15.8 MnT in FY17. JSW Steel the steel maker has significantly decreased its iron ore sourcing by 45 % M-o-M to 1.89 MnT in Sept’17 against 3.42 MnT in Aug’17.

However on quarterly basis, steel maker’s iron ore sourcing fell marginally by 2% to 7.73 MnT in Q2 FY18.
In H1 FY18 (Apr-Sept’17) JSW Steel sourced 15.6 MnT iron ore and its crude steel output was recorded at 7.86 MnT in first half of this fiscal.

Sourcing from NMDC (C.G.) increased significantly in Sept’17 – JSW Steel (Dolvi) procured 70 rakes from NMDC Chhattisgarh mines in Sept’17 against 7 rakes in Aug’17. It is to be noted that NMDC (C.G.) has announced price hike for Sept’17. Baila lump and fines prices had moved up by INR 175/MT.

Procurement from Karnataka down by 60% in Sept’17 – JSW Steel procurement fell sharply by 60% M-o-M in Sept’17 to 0.97 MnT iron ore from Karnataka e-auctions in Sept’17 compared to 2.42 MnT in Aug’17. Out of 0.97 MnT iron ore procured in Sept’17, share of NMDC was (70%) followed by R. Praveen Chandra (7%) and remaining was of private miners (23%). O ut of 0.97 MnT iron ore sourced, 0.69 MnT was fines and 0.27 MnT was lump.

Iron ore procurement from Odisha merchant mines down by 22% – JSW Steel decreased iron ore sourcing by 22% M-o-M to 0.56 MnT compared to 0.72 MnT in Aug’17. Majority of iron ore sourced from Odisha was from Rungta Mines and Serajuddin Mines.

No import vessels in Sept’17 – JSW Steel iron ore imports remained nil in Sept’17 compared to 0.17 MnT iron ore in Aug’17.

Steel maker’s increased the iron ore procurement from Jharkhand by 10% to 0.10 MnT in Sept’17 compared to Aug’17 which was 0.09 MnT then.

Plant-wise iron ore sourcing pattern of JSW Steel: Sept’17 Vs Aug’17

Qty in MT
Provisional data,
Source: SteelMint Research,