India’s largest steel producer – JSW Steel reduced its iron ore sourcing by 21% M-o-M from 2.92 MnT in Jan’17 to 2.31 MnT in Feb’17.
Purchases from Karnataka down 16% in Feb’17 – JSW Steel procured 1.63 MnT iron ore from Karnataka e-auctions in Feb’17 compared to 1.95 MnT in Jan’17. Out of 1.63 MnT iron ore procured in Feb’17, share of NMDC was 50% and remaining was of private miners (28%) and Mysore Minerals (22%). Out of 1.63 MnT iron ore sourced, 1.1 MnT iron ore sourced was fines and 0.53 MnT was lump.
In Feb’17, the steel giant sourced fines (Fe 60.8%) at bid price of INR 2,030/MT and lump (Fe 62.7%) at INR 2,480/MT. Grades & bid prices (basic) mentioned are weighted average.
Single import vessel in Feb’17 – JSW Steel imported 0.16 MnT iron ore in Feb’17 against 0.34 MnT in Jan’17. The steel maker imported 0.16 MnT iron ore (hedged cargo) from Brazil in Feb’17 at Jaigarh port for its Dolvi plant via vessel name “Navious Stellar”.
Sourcing from NMDC (C.G.) down 18% M-o-M – JSW Steel procured 48 rakes from NMDC Chhattisgarh mines in Feb’17 against 57 rakes in Jan’17. On monthly premises, steel maker’s iron ore sourcing from NMDC Chhattisgarh has come down by about 18% M-o-M in Feb’17. It is to be noted that NMDC (C.G.) raised iron ore prices up to INR 185/MT for Feb’17 deliveries.
Iron ore procurement from Odisha merchant mines down 9% M-o-M- The steel making company reduced iron ore sourcing from Odisha mines to 0.32 MnT in Feb’17. In Jan’17 it sourced 0.35 MnT iron ore.
Odisha based miners kept iron ore prices unchanged for major part of Feb’17 however towards the end of Feb’17, lump prices increased up to INR 300/MT. Fines (Fe 63%) prices remained at INR 1,675/MT (loaded to wagons) in Feb’17. However miners were seen offering discount of INR 100-200/MT to regular buyers on bulk quantity purchases.
Plant-wise iron ore sourcing pattern of JSW Steel: Feb’17 vs Jan’17
|
Plants name |
Jan’17 |
Feb’17 |
| JSW Steel, Dolvi | 899,784 | 616,157 |
| Chhattisgarh | 219,450 | 184,800 |
| Odisha | 274,804 | 258,848 |
| Import | 336,230 | 164,810 |
| Jharkhand | 69,300 | 7,700 |
| JSW Steel, Salem | 66,640 | 74,342 |
| Karnataka | 36,000 | 44,000 |
| Odisha | 30,640 | 30,342 |
| JSW Steel, Vijaynagar | 1,955,000 | 1,619,793 |
| Chhattisgarh | – | – |
| Jharkhand | – | – |
| Karnataka | 1,915,000 | 1,589,000 |
| Odisha | 40,000 | 30,793 |
| Import | – | – |
| Grand Total | 2,921,424 | 2,310,292 |
Qty in MT
Provisional data,
Source: SteelMint Research, Customs, Karnataka DMG, Railways
In first eleven months of this fiscal, JSW Steel procured 27.1 MnT iron ore compared to 19.1 MnT iron ore in the same period last fiscal, up 42% Y-o-Y.
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