Advancing further towards its targeted crude steel output, the steel maker sourced 14.08 MnT iron ore in H1 FY17 (up by 45% Y-o-Y) and its crude steel production in the same time frame was recorded at 7.85 MnT (up by 18% Y-o-Y).
India’s largest private sector steel making company – JSW Steel has increased its iron ore sourcing by 22% Q-o-Q from 6.34 MnT in Q1 FY17 to 7.74 MnT in Q2 FY17.
Sourcing from Odisha up by 42% – JSW Steel sourced 1.48 MnT iron ore from Odisha merchant miners (primarily Rungta Mines & Serajuddin) in Q2 FY17 against 1.04 MnT in Q1 FY 17. In Q1 FY17, JSW Steel began sourcing iron ore from Odisha for its Vijayanagar and Salem plants as well. Sourcing for both these plants increased significantly in Q2 FY17. Towards the end of Jun’16 to early Jul’16, Odisha merchant miners reduced prices by INR 100-150/MT which remained unaltered till mid Sept’16. Stability in prices and offered quantity discounts on bulk purchases increased sourcing.
Doubles sourcing from NMDC (Chhattisgarh) – JSW Steel procured 0.56 MnT iron ore from NMDC’s Bailadila mines in Chhattisgarh in Q2 FY17 compared to 0.28 MnT in first quarter of this fiscal. The miner had cut iron ore prices upto INR 110/MT for Jul deliveries and rolled over the prices for next two months. Thus unmoved iron ore prices favored improved iron ore procurement.
Iron ore purchases via Karnataka e-auctions up by 7% – The steel giant procured 4.51 MnT iron ore from Karnataka e-auctions in Q2 FY17 compared to 4.22 MnT in the previous quarter. Out of 4.51 MnT iron ore sourced in Q2 FY17, 2.51 MnT was sourced from NMDC and remaining was from Mysore Minerals and private miners. Base prices in Karnataka e-auctions remained mostly unmoved.
Resumed purchases from Jharkhand – JSW Steel did not source any quantity of iron ore from Jharkhand in Q1 FY17. However in Q2 FY 17, the steel maker sourced 0.28 MnT iron ore from Jharkhand for its Vijayanagar plant. Entire quantity sourced was from Rungta Mines.
Iron ore imports of JSW up by 15% – The steel maker imported 0.8 MnT iron ore in Q1 FY17 which moved up to 0.92 MnT in Q2 FY17. The hedged cargo was imported from Brazil and South Africa in Q2 FY17. All the imported iron ore was used up at its Dolvi plant apart from a single shipment of 0.17 MnT which was diverted to Krishnapatnam port for its Vijayanagar plant.
Sourcing from Goa remains nil – No iron ore e-auctions in Goa were conducted in Q2 FY17 owing to prevailing monsoon seasons hence the steel maker’s sourcing from Goa e-auctions remained nil in Q2 FY17.
Plant-wise iron ore sourcing of JSW Steel in H1 FY17
|
Plants name |
April’16 | May’16 | Jun’16 | Jul’16 | Aug’16 | Sept’16 |
Total |
| JSW Steel, Dolvi | 1,020,133 | 416,098 | 410,200 | 703,805 | 700,698 | 534,334 | 3,785,267 |
| Chhattisgarh | 157,850 | 123,200 | – | 250,250 | 177,100 | 127,050 | 835,450 |
| Odisha | 392,283 | 132,898 | 240,200 | 291,955 | 270,699 | 73,554 | 1,401,587 |
| Import | 470,000 | 160,000 | 170,000 | 161,600 | 252,900 | 333,730 | 1,548,230 |
| JSW Steel, Salem | 88,000 | 48,000 | 183,988 | 85,948 | 126,253 | 73,422 | 605,611 |
| Karnataka | 88,000 | 48,000 | 84,000 | 44,000 | 48,000 | 20,000 | 332,000 |
| Odisha | – | – | 99,988 | 41,948 | 78,253 | 53,422 | 273,611 |
| JSW Steel, Vijayanagar | 1,199,145 | 1,387,223 | 1,589,125 | 1,664,398 | 1,880,491 | 1,974,314 | 9,694,696 |
| Chhattisgarh | – | – | – | – | 7,700 | – | 7,700 |
| Jharkhand | – | – | – | 73,150 | 142,450 | 61,600 | 277,200 |
| Karnataka | 1,196,000 | 1,268,000 | 1,538,000 | 1,417,000 | 1,213,000 | 1,772,000 | 8,404,000 |
| Odisha | 3,145 | 119,223 | 51,125 | 174,248 | 350,341 | 140,714 | 838,796 |
| Import | – | – | – | – | 167,000 | – | 167,000 |
| Grand Total | 2,307,278 | 1,851,321 | 2,183,313 | 2,454,150 | 2,707,443 | 2,582,070 | 14,085,573 |
Qty in MT
Provisional data,
Source: SteelMint Research, Customs, Karnataka DMG, Railways
JSW Steel’s quarterly crude steel production highest ever in Q2 FY17 – The steel maker has achieved highest ever quarterly crude steel production in Q2 FY17. The company reported crude steel production of 3.98 MnT in Q2 FY17 against 3.87 MnT in Q1 FY17 (up by 3% Q-o-Q).
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