JSW Steel is India’s largest steel maker with crude steel production of 15.8 MnT in FY17. JSW Steel – India’s largest steel maker has recorded an increase of 5% M-o-M in its crude steel output from 1.278 MnT in Jul’17 to 1.337 MnT in Aug’17.
The steel maker has increased its iron ore sourcing by 41 % M-o-M in Aug’17. The steel giant procured 3.42 MnT iron ore in Aug’17 against 2.42 MnT in Jul’17.
Purchases from Karnataka More than Doubled in Aug’17 – JSW Steel procured 2.42 MnT iron ore from Karnataka e-auctions in Aug17 compared to 1.05 MnT in Jul’17. Out of 2.42 MnT iron ore procured in Aug’17, share of NMDC was (41%) and remaining was of private miners (40%) and Mysore Minerals (20%). Out of 2.42 MnT iron ore sourced, 1.79 MnT iron ore sourced was fines and 0.62 MnT was lump.
Single import vessel in Aug’17 – JSW Steel imported 0.17 MnT iron ore in Aug’17. A Jul’17 import was more quantity of iron ore. The steel maker imported 0.17 MnT iron ore (hedged cargo) from Australia in Aug’17 at Krishnapatnam port. The steel maker has been importing hedged cargoes under the long-term contract.
Sourcing from NMDC (C.G.) decreases in Aug’17 – JSW Steel procured 7 rakes from NMDC Chhattisgarh mines in Aug’17 against 31 rakes in Jul’17. It is to be noted that NMDC (C.G.) has announced price hike up to 9% for Sept’17 deliveries. Baila lump and fines prices have moved up by INR 175/MT, DR CLO by INR 240/MT and ROM by INR 185/MT. The miner had rolled over iron ore prices for Aug’17.
The miner has increased the iron ore base prices for the Sep’17 Karnataka e-auctions as well. The company has increased the prices between INR 120/MT to INR 200/MT.
Iron ore procurement from Odisha merchant mines down 5% M-o-M- The steel making company decreased iron ore sourcing from 0.75 MnT in Jul’17 to 0.72 MnT in Aug’17. Odisha based merchant miners had increased iron ore prices in Aug’17 between INR 125/MT to INR 600/MT.
Steel maker’s iron ore procurement from Jharkhand was down 8% at 0.09 MnT in Aug’17 compared to Jul’17 which was 0.1 MnT.
Plant-wise iron ore sourcing pattern of JSW Steel: Aug’17 Vs Jul’17
| Company |
Aug-17 |
Jul-17 |
| JSW Steel (Vijayanagar) |
3,014,371 |
1,620,363 |
| Karnataka |
2,384,000 |
1,031,000 |
| Odisha |
382,721 |
333,923 |
| Import |
166,800 |
166,890 |
| Jharkhand |
80,850 |
88,550 |
| JSW Steel (Dolvi Works) |
371,615 |
759,489 |
| Odisha |
336,965 |
393,889 |
| Chhattisgarh |
26,950 |
119,350 |
| Jharkhand |
7,700 |
7,700 |
| Import | – |
238,550 |
| JSW Steel (Salem Works) |
32,000 |
42,851 |
| Karnataka |
32,000 |
16,000 |
| Odisha | – |
26,851 |
| Grand Total |
3,417,986 |
2,422,704 |
Qty in MT
Provisional data,
Source: SteelMint Research, Customs, Karnataka DMG, Railways
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