In FY17 (till Dec’16), the steel maker has sourced 21.8 MnT iron ore, up 42% Y-o-Y. Its crude steel output in time frame of Apr-Dec’16 jumped 25% Y-o-Y to 11.7 MnT.
India’s largest steel producer – JSW Steel’s iron ore sourcing remained stable at 7.76 MnT on quarterly basis in Q3 FY17. However if we compare on yearly basis steel maker’s iron ore sourcing has significantly increased 40% as it was 5.55 MnT in Q3 FY16.
Purchases from Karnataka e-auctions up 13% Q-o-Q – JSW Steel procured 5.08 MnT iron ore from Karnataka e-auctions in Q3 FY17 compared to 4.51 MnT in Q2 FY17. Out of 5.08 MnT iron ore procured in Q3 FY17, share of NMDC was 53% and remaining was of private miners (31%) and Mysore Minerals (16%). 3.46 MnT iron ore sourced was fines, 1.56 MnT was lump and 0.06 MnT was ROM.
JSW Steel’s iron ore imports up marginally in Q3 FY17 – The steel maker continues to remain the largest importer so far in this fiscal. It imported 0.99 MnT iron ore in Q3 FY17 against 0.92 MnT in previous quarter. All the import shipments in Q3 FY17 were directed to JSW Steel, Dolvi plant and the entire quantity was imported from Brazil under long-term agreement.
Sourcing from NMDC (C.G.) down 5% Q-o-Q – JSW Steel sourced 0.53 MnT iron ore via railway movement from NMDC’s Bailadila mines in Chhattisgarh in Q3 FY17 against 0.56 MnT in Q2 FY17. Entire quantity procured was used up at its Dolvi plant. In Q3 FY17, amid increased global prices & domestic finished steel prices, NMDC increased prices of Baila fines from INR 1,760/MT to INR 1,860/MT (FoR prices, Royalty, DMF & NMET extra).
Procurement from Odisha merchant mines fell 25% – JSW Steel procured 1.11 MnT iron ore from Odisha mines in Q3 FY17 compared to 1.48 MnT in Q2 FY17. JSW Steel’s Dolvi and Salem plants raised sourcing from Odisha in Q3 FY 17 while dropped for its Vijayanagar plant. Prices of Odisha fines (Fe 63%) remained majorly stable at INR 1,550/MT (loaded to wagons & Including Royalty, DMF & NMET) in Q3 FY17. Also the miners were heard giving quantity discounts on bulk iron ore purchases.
Plant-wise iron ore sourcing pattern of JSW Steel in FY17
|
Plants name |
Q1 FY17 | Q2 FY17 |
Q3 FY17 |
| JSW Steel, Dolvi | 1,846,430 | 1,938,836 | 2,186,022 |
| Chhattisgarh | 281,050 | 554,400 | 535,150 |
| Odisha | 765,380 | 636,207 | 647,862 |
| Import | 800,000 | 748,230 | 995,310 |
| Jharkhand | – | – | 7,700 |
| JSW Steel, Salem | 319,988 | 285,623 | 352,253 |
| Karnataka | 220,000 | 112,000 | 172,000 |
| Odisha | 99,988 | 173,623 | 180,253 |
| JSW Steel, Vijaynagar | 4,175,493 | 5,519,203 | 5,224,299 |
| Chhattisgarh | – | 7,700 | – |
| Jharkhand | – | 277,200 | 34,650 |
| Karnataka | 4,002,000 | 4,402,000 | 4,910,500 |
| Odisha | 173,493 | 665,303 | 279,150 |
| Import | – | 167,000 | – |
| Grand Total | 6,341,910 | 7,743,662 | 7,762,574 |
Qty in MT
Provisional data,
Source: SteelMint Research, Customs, Karnataka DMG, Railways
So far in this fiscal (till Dec’16), JSW Steel procured 21.8 MnT iron ore compared to 15.3 MnT iron ore in the same period last fiscal, up 42% Y-o-Y. On quarterly premises, company’s crude steel output declined by 3% from 3.98 MnT in Q2 FY17 to 3.86 MnT in Q3 FY17.
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