JSW Steel- India’s leading private steelmaker recorded merchant iron ore sourcing at 19.43 mn t in FY’21. The sourcing witnessed a drop by 19% as against 24 mn t in FY’20. The company has ramped up its captive iron ore production from its mines in Odisha and Karnataka in FY’21, thereby lowering merchant sourcing.
Sourcing from Odisha dropped in FY’21
The steelmaker procured 0.87 mn t iron ore from Odisha based miners in FY’21, down 75% as compared to 3.47 mn t in FY’20.
Sourcing from NMDC (C.G.) increased in FY’21
JSW Steel (Dolvi) sourcing from NMDC increased by 22% to 2.55 mn t in FY’21 against 2.09 mn t in FY’20.
JSW iron ore purchases from Karnataka e-auction down 12% in FY’21
In FY’21, JSW purchased around 15.9 mn t of iron ore from Karnataka e-auctions against 18.08 mn t in FY’20. Out of 15.9 mn t iron ore sourced by JSW, NMDC supplied 5.51 mn t down by 3% against 5.69 mn t last fiscal and thus contributed around 35% of total JSW sourcing. Vedanta remained the second-largest iron ore supplier to JSW Steel at 3.9 mn t against 5.38 mn t in FY’20.
JSW Steel imports dropped by 79% for the year amid high prices
JSW Steel imports witnessed significant drop for the year to 0.08 mn t as against 0.37 mn t in FY’20. The yearly average global iron ore fines (Fe 62%) prices increased to $126/t CFR China in FY’21 as against $95/t CFR China in FY’20. Also, the prices were hovering as high as $178/t, CNF China towards Mar’21 beginning.
Earlier JSW announced that it targets to produce around 13.5 mn t iron ore this fiscal from its four mines in Odisha that it won in auctions, shared Mr Ranjan Nayak in a webinar conducted by SteelMint in Jan’21. The company is also intending to enhance the production limits of three of its mining leases in the coming two to three years. JSW expects to produce around 7-8 mn t iron ore from nine captive mines in Karnataka in FY’21, which will be used at its Vijayanagar plant.
JSW Steel Iron Ore Sourcing in FY’21 & FY’20
Quantity in mn t
Provisional Data
Source: SteelMint
The manufacturer’s crude steel production for FY’21 was at 15.08 mn t, down by 6% as compared to 16.06 mn t a year ago. On a quarterly basis, it increased by 3% in Q4 FY’21 to 4.19 against 4.08 mn t in Q3. The capacity utilization during Q4 has improved significantly to 93% as against 66% in Q1.
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