Indian steel major JSW Steel sourced 2.31 million tonnes (mnt) of iron ore from the merchant market in Jan’22. The sourcing remained stable when compared to the previous month. The figures exclude captive iron ore sourcing.
Purchases from Karnataka e-auctions drop 13%
JSW Steel sourced around 1.57 mnt of iron ore from the Karnataka e-auctions in Jan’22, a significant drop of 13% as compared to 1.81 mnt in Dec’21. Lesser number of auctions conducted in the month resulted in lowering of iron ore sourcing.
Out of this, NMDC and Vedanta supplied 0.75 mnt and 0.36 mnt in Jan’22, respectively. The company’s iron ore sourcing from NMDC rose 21% on month while that from Vedanta fell sharply by 54%, m-o-m.
Iron ore sourcing from NMDC Chhattisgarh up 37%
JSW Steel’s iron ore sourcing from NMDC’s Chhattisgarh mines rose significantly by 37% in Jan’22 to 0.41 mnt when compared to 0.30 mnt in Dec’21. Out of this, Monnet Ispat and Energy procured 7,700 tonnes (t) of iron ore as against 3,850 t a month ago. Notably, NMDC had raised iron ore fines prices by INR 200/t and DR CLO prices by INR 350/t for February deliveries. Despite the price hike, sourcing remained supported amidst parity on landed costs.
Sourcing from Odisha merchant miners decreases
The company recorded nil iron ore sourcing from Odisha-based merchant miners in Jan’22. The miner raised production volumes from its captive mines in Odisha which, in turn, led to lowered sourcing from the merchant miners. JSW Steel recorded a significant 45% fall in production to 1.26 mnt for Jan’22 as against 2.31 mnt in Dec’21.
JSW Steel Iron Ore Sourcing in Jan’22 & Dec’21
*Correction: Import numbers corrected and hence the total figures have been updated accordingly.
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