India: JSW Steel’s Iron Ore Sourcing Up 24% in May’17

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% growth M-o-M in its May’17 crude steel output. In May’17, its crude steel output stood at 1.357 MnT against 1.288 MnT in Apr’17.

The steel maker has increased its iron ore sourcing by 24% M-o-M in May’17. The steel giant procured 2.95 MnT iron ore in May’17 against 2.38 MnT in Apr’17.

Purchases from Karnataka Up 35% in May’17 – JSW Steel procured 1.79 MnT iron ore from Karnataka e-auctions in May’17 compared to 1.32 MnT in Apr’17. Out of 1.79 MnT iron ore procured in May’17, share of NMDC was 50% and remaining was of private miners (35%) and Mysore Minerals (15%). Out of 1.79 MnT iron ore sourced, 1.34 MnT iron ore sourced was fines and 0.45 MnT was lump.

Single import vessel in May’17 – JSW Steel imported 0.16 MnT iron ore in May’17. A Apr’17 import was the same quantity of iron ore. The steel maker imported 0.16 MnT iron ore (hedged cargo) from Brazil, Carajas fines in May’17 at Jaigarh port for its Dolvi plant. The steel maker has been importing hedged cargoes under the long-term contract.

Sourcing from NMDC (C.G.) decreases in May’17 – JSW Steel procured 51rakes from NMDC Chhattisgarh mines in May’17 against 66 rakes in Apr’17. It is to be noted that NMDC (C.G.) rolled over iron ore prices for May’17 deliveries.

Iron ore procurement from Odisha merchant mines up 13% M-o-M- The steel making company raised iron ore sourcing from 0.55 MnT in Apr’17 to 0.62 MnT in May’17. Odisha based merchant miners cut iron ore in May’17 due to sharp decline in iron pellet and sponge prices and tumbling global iron ore prices there was a decline in Odisha iron ore prices.

Steel maker’s iron ore procurement from Jharkhand has remained stable with 0.09 MnT for May’17 against Apr’17.

Plant-wise iron ore sourcing pattern of JSW Steel: May’17 Vs Apr’17

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