Major Indian Sponge Plants Sourcing of Iron Ore Down by 8% in Jun’16

Iron ore sourcing of 12 major sponge plants in India has fallen by 8% M-o-M in Jun’16. They sourced 2.42 MnT iron ore in Jun’16 compared to 2.63 MnT in May’16.

India’s sponge iron capacity is 47 MnT in FY16. Out of which top sponge makers contribute the major part in India’s sponge iron production. SteelMint has tried to analyze iron ore sourcing pattern of India’s major sponge producers whose combined capacity is about 35% of India’s total sponge producing capacity.

Essar Steel’s iron ore procurement remained stable on monthly premises. It sourced 0.84 MnT in Jun’16 against 0.83 MnT in May’16. JSPL’s iron ore sourcing also remained stable on monthly basis. It procured 0.76 MnT iron ore in Jun’16 compared to 0.77 MnT in May’16.

Other major sponge plants iron ore sourcing was as follows: Rashmi Metaliks – 0.49 MnT and Usha Martin – 0.42 MnT. Iron ore sourcing of Shyam Group (Shyam Sel and Shyam Metaliks & Energy) nearly doubled its iron ore sourcing from 0.07 MnT in May’16 to 0.14 MnT in Jun’16.

Significant increase in iron ore sourcing pattern of BMM Ispat has been noticed. It procured 0.06 MnT iron ore in Apr’16 which moved up and stood at 0.11 MnT in May and Jun’16.

In Q1 FY17, these 12 major sponge iron manufacturers procured 7.66 MnT iron ore.

12 Major sponge plants iron ore sourcing in Q1 FY17

*It does not include procurement from their respective captive mines
Qty in MT
Provisional Data
Source: SteelMint Research