JSW Steel: Iron Ore Sourcing Fell 12% in FY'20
...
JSW Steel- India's one of the largest private steelmaker total iron ore sourcing recorded at 24.02 MnT in FY'20. The sourcing witnessed a drop by 12% as against 27.41 MnT in FY'19.
Sourcing from Odisha picked up in FY'20
The steelmaker procured 3.47 MnT iron ore from Odisha based miners in FY'20, up 24% as compared to 2.79 MnT in FY'19.
Odisha's major miners had reduced iron ore prices towards the end of the fiscal. As mines were going to be auctioned who were expiring lease on 31st Mar'20 and it was stimulated all the miners to increase iron ore production. Also, few major steel mills had aggressively bookings ahead of Mar'20 lease expiry.
Sourcing from NMDC (C.G.) increased in FY'20
JSW Steel (Dolvi) sourcing from NMDC increased by 25% to 2.09 MnT in FY'20 against 1.67 MnT in FY'19.
JSW iron ore purchases from Karnataka e-auction up 29% in FY'20
JSW Steel sourcing from Karnataka e-auctions increased sharply by 29% in FY20-:
In the fiscal year, FY'20 JSW depicted a sharp rise in purchases of iron ore from Karnataka e-auctions to around 18.09 MnT against 14.06 MnT in FY19.
Out of 18.09 MnT iron ore sourced by JSW, NMDC supplied 5.69 MnT down by 12% against 6.45 MnT last fiscal year (included Donimalai production till Nov'18) and thus contributed around 31% of total JSW sourcing.
Vedanta mines remain the second-largest iron ore supplier but increased iron ore sales in the auction more than three times to JSW Steel at 5.38 MnT in FY'20.
JSW Steel imports dropped by 96% for the year amid high prices
JSW Steel imports witnessed significant drop for the year to 0.37 MnT as against 8.90 MnT in FY'19. The spot iron ore fines price for the year FY'20 increased to USD 95.5/MT, CFR China as compared to USD 71.3/MT, CFR China in FY'19. The year witnessed the highest index price in July'19 at USD 120/MT,CFR China. The prices for the month were hovering five years high levels at USD 126/MT, CFR China towards early July.
JSW Steel Iron Ore Sourcing in FY'20 & FY'19
| Buyer | Load States | FY20 | FY19 |
| JSW Steel (Vijayanagar) | Karnataka | 16.87 | 13.38 |
| Odisha | 0.06 | 0.47 | |
| Import | - | 4.78 | |
| JSW Steel (Vijayanagar) Total | 16.93 | 18.63 | |
| JSW Steel (Dolvi Works) | Odisha | 3.21 | 2.05 |
| Chhattisgarh | 2.09 | 1.67 | |
| Import | 0.37 | 4.12 | |
| Karnataka | 0.06 | - | |
| JSW Steel (Dolvi Works) Total | 5.73 | 7.83 | |
| JSW Steel (Salem Works) | Karnataka | 1.16 | 0.68 |
| Odisha | 0.19 | 0.27 | |
| JSW Steel (Salem Works) Total | 1.35 | 0.95 | |
| Grand Total | 24.02 | 27.41 |
Source: SteelMint,
Quantity in MnT
Provisional Data
JSW's crude steel output stood at 16.06 MnT in FY'20, down by 4% against 16.69 MnT in the previous fiscal year. JSW Steel is gearing up to recommence full scale operations at all its units from April 15 after the lifting of lockdown orders.
