India: JSW Steel’s Iron Ore Import Double in May’18

The steel maker imported 1.35 MnT iron ore in May’18 against 0.66 MnT in previous month. Sourcing from Karnataka e-auctions has increased this month against Apr’18 but still lower than its usual monthly purchase.

JSW Steel – India’s largest steel maker continued to import significantly in May’18 and recorded imports at 1.35 MnT, an increase by more than twice on monthly basis.
Out of the total imported quantity in May’18, JSW Steel imported 1.11 MnT from Australia, 0.17 MnT from Brazil and 0.07 MnT from South Africa.

The company imported 0.80 MnT iron ore at Krishnapatnam port while Jaigarh port contributed the remaining 41% of imports of 0.55 MnT.

The steel maker has strengthened its imports in last couple of months. According to the market sources reported to the SteelMint, JSW imported vessels of lump from Australia in May’18 for its Vijayanagar plant.

JSW has reduced its sourcing from NMDC, Karnataka in past couple of months owing to high base prices and looks its shifting to Odisha and imports to fulfill the demand.

JSW Steel total iron ore procurement increased sharply to 59% in May’18

JSW Steel, iron ore sourcing recorded significant increase in May’18. The iron ore sourcing witnessed at 3.03 MnT, increase of 59% M-o-M as against 1.91 MnT in Apr’18.
On yearly basis, iron ore sourcing depicted a marginal rise in May’18 as against 2.95 MnT in May’17.

JSW Procurement from Karnataka e-auctions up 66% M-o-M:

JSW Steel’s iron ore purchases from Karnataka e-auctions stood at 1.03 MnT in May’18, up by 66% M-o-M compared to 0.62 MnT in Apr’18. However procurement is less compared to its previous off takes as it generally procures around 1.5 MnT every month from Karnataka. Out of 1.03 MnT iron ore sourced in May 0.76 MnT was fines and remaining 0.27 MnT was lumps.

JSW iron ore procurement from NMDC witnessed at 0.06 MnT in May’18, in line with Apr’18 procurement. However, sourcing from private miner has increased .Company has increased buying from private buyers to 0.97 MnT in May’18 against 0.56 MnT in Apr’18. .

Procurement from Odisha merchant mines down marginally in May’18:

In May’18, the company’s iron ore sourcing from Odisha recorded at 0.40 MnT, down marginally as against 0.42 MnT in Apr’18.

Steelmaker’s iron ore procurement from Jharkhand in May’18 recorded at 0.05 MnT, up more than two folds M-o-M as against being 0.02 MnT a month before.

Sourcing from NMDC (C.G.) up marginally in May’18:

JSW Steel (Dolvi) procured 51 rakes from NMDC Chhattisgarh mines in May’18, up slightly as against 49 rakes in Apr’18. NMDC Chhattisgarh kept base prices in line with Apr’18 prices, but increased iron ore prices by the last week of month around INR 100-170/MT in May’18.

Plant-wise iron ore sourcing pattern of JSW Steel: May’18 Vs Apr’18

Source: SteelMint Research, Karnataka DMG, Odisha govt.
Quantity in MnT
Provisional Data