India: JSW Steel continue to Import Iron Ore from South Africa

JSW Steel, one of the India’s steel giants, is expecting two Iron ore import vessels carrying total 0.34 MnT to arrive by month-end.

JSW Steel with an installed capacity of 14.3 MnT had produced 12.17 MnT in FY14. It expects to increase its production to 12.9 MnT in FY15.

Continued Iron ore shortfall in the domestic market has paved the way for imports. Till July, in FY15 India has imported 1.1 MnT Iron ore from Australia, South Africa & Mauritania.

Viewing rise in imports, market is anticipating that JSW Steel will breach its target of producing 12.9 MnT in FY15. Company is also actively participating in Karnataka & Chhattisgarh e-auctions. 

To maintain the production at optimum level, JSW Steel requires 22-23 MnT Iron ore annually. The company’s off take from Odisha/Jharkhand fell by 50%; from 72 loaded rakes in Jun’14 to merely 37 rakes in Jul’14. To compensate for this reduction, it has increased its raw material imports.

JSW Steel has imported 0.56 MnT Iron ore till July in FY15. In Aug’14, 0.33 MnT has been imported by the company (till 12 Aug, 2014). Two shipments of 0.34 MnT are yet to arrive at Krishnapatnam port. 

Details of JSW Iron Ore Import Shipment

Qty in MT
* Vessel expected
Provisional data
Source: SteelMint Research