JSW steel continues to increase its purchases from Odisha. But 50:50 rule in Odisha has restricted supply to a certain extent.
With Iron ore supply yet to streamline in Karnataka, JSW steel which is India’s largest steel producer with an installed capacity of 14.3 MnT is trying hard to achieve its production goals for FY14. The company is increasing its raw material sourcing from outside Karnataka to achieve the target of 12 MnT of crude steel in this financial year.
According to a data aggregated by SteelMint, JSW Steels bought around 2.5 MnT high grade Iron ore from Odisha during Apr’13- Jan’14. Data showed company has bought over 1 MnT from Rungta mines, 0.6 MnT from Serajuddin Mines, 0.32 MnT from Essel Mining and remaining from other miners.
Company has a total requirement of around 23-24 MnT Iron ore to run its steel plant at optimum utilization. Despite tight supply of Iron Ore, the company has managed to run its plant at around 80-85% capacity. For which 80% Iron ore sourced from Karnataka e-auction and rest from Odisha, Jharkhand & Chhattisgarh.
Currently in Karnataka, 23 mines are operational including two mines of the NMDC, with a total production of around 18 MnT. And, there are few more mines to start by end of this financial year which will add a capacity of 1 MnT of Iron ore. The total availability will be for next fiscal year will be around 20 MnT, said JSW officials.
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