India: JSW Steel's Iron Ore Sourcing Increased 11% in FY'18

JSW Steel - India's largest steel maker crude steel output increased to 16.27 MnT in FY'18 as against 15.8 MnT in FY'17. The output in FY'18 stood highest ever achieved output. On monthly basis the output spurred to 1.52 MnT in Mar'18, up 14% against 1.33 MnT in Feb'18.

The steel maker's iron ore sourcing also moved up over rise in crude steel output. In FY'18, the company sourced a total of 33.10 MnT iron ore, up 11% as against 29.85 MnT in FY'17.

The company recorded significant increase in iron ore sourcing in Mar'18. The iron ore sourcing stood at 3.39 MnT, up 41% M-o-M as against 2.40 MnT in Feb'18. The Y-o-Y iron ore sourcing increased 20% in Mar'18 as against 2.83 MnT in Mar'17.

Iron ore Procurement from Odisha merchant mines up 30% in FY'18:

In fiscal year FY'18, JSW iron ore procurement from Odisha increased by 30% to 6.23 MnT, against 4.79 MnT in FY'17. Major sources of iron ore from Odisha were - Rungta Mines (4.83 MnT), Serajuddin Mines (2.41 MnT) and Kaypee Enterprises.

In Mar'18, the company's iron ore sourcing increased to 0.36 MnT, up 30% as against 0.28 MnT in Feb'18. JSW Steel's iron ore procurement from Odisha mines has increased in Mar'18 due to resumption of major mines towards the end of Feb'18. The sourcing remained low for the first two months of CY'18 owing to closure of few major mines due to illegal mining activities.

Steelmaker's iron ore procurement from Jharkhand in FY'18 recorded 62% rise to 0.69 MnT against 0.42 MnT in FY'17, while the sourcing recorded nil in Mar'18.

Sourcing from NMDC (C.G.) stable on yearly basis:

JSW sourced 1.87 MnT iron ore from NMDC, Chhattisgarh mines in FY18, stable against FY17.

JSW Steel (Dolvi) procured 60 rakes from NMDC Chhattisgarh mines in Mar'18, in line with sourcing in Feb'18 at 61 rakes. NMDC Chhattisgarh reduced iron ore prices for Mar'18 by INR 90-120/MT. However, the miner had kept prices unchanged in Feb'18 except for a small reduction of INR 30/MT in DR-CLO.

JSW witnessed 44% increase in its iron ore imports:

In FY'18, JSW Steel continued to remain India's largest importer at 5.10 MnT, up sharply by 44% Y-o-Y as against 3.55 MnT in FY'17. JSW generally imports ore as hedged cargo (concentrate and fines) under long-term contracts primarily from Brazil and Australia.

JSW iron ore imports in Mar'18 recorded steep rise of 96% at 1.13 MnT (almost double on monthly basis), as against 0.58 MnT in Feb'18. The total imports of 1.13 MnT was from Australia, with 0.76 MnT imported at Krishnapatnam port and remaining 0.37 MnT at Jaigarh port.

Procurement from Karnataka stable on yearly basis:

In FY'18, JSW sourced a total of 19.11 MnT iron ore stable on yearly basis as against 19.20 MnT in FY'17. Out of the total material procured in FY18, 10.51 MnT from NMDC's mines in Karnataka.

JSW Steel's iron ore purchases from Karnataka e-auctions stood at 1.67 MnT in Mar'18, increase of 27% M-o-M compared to 1.32 MnT in Feb'18. Out of 1.67 MnT iron ore sourced 1.26 MnT was fines and 0.41 MnT was lumps.

Plant-wise iron ore sourcing pattern of JSW Steel: FY'18 Vs FY'17

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