JSW Steel: Iron Ore Sourcing Up 53% in Feb'19

JSW Steel - India's largest steel maker total iron ore sourcing at 2.85 MnT in Feb’19. The sourcing witnessed 53% rise M-o-M as against 1.87 MnT in Jan'19. On yearly basis, sourcing increased 19% as against 2.40 MnT in Feb’18.

JSW Steel Iron Ore Imports up in Feb'19

JSW Steel's iron ore imports for Feb'19 recorded at 0.50 MnT, up more than double as against 0.19 MnT in Jan’19 amid resumption at Krishnapatnam port.

The miner imported 0.33 MnT of ore from Australia (up 74% M-o-M), and 0.17 MnT imports from Brazil. Krishnapatnam port had declared Force Majeure for vessels having Draft above 14.50 MnT since 15 Dec'18, the port resumed during the month of Feb'19.

However, amid hike in global iron ore prices , imports are expected to come down in coming months.

Sourcing from Odisha up 51% in Feb'19

The steelmaker procured 0.20 MnT iron ore from Odisha based miners in Feb’19, up 51% compared to Jan’19 sourcing at 0.13 MnT.

According to sources report, miners increased discount on bulk fines purchase.Many merchant miners in Odisha have mostly utilized their EC limits for the year and are not seen actively offering material in the market. Earlier, Odisha merchant miners had twice raised iron ore prices in the month of Feb'19 following vale incident. Later Essel mining decreased prices by INR 300-400/MT in both lumps and fines.

Sourcing from NMDC (C.G.) up sharply in Feb’19

JSW Steel (Dolvi) sourcing from NMDC recorded at 45 rakes in Feb'19, up 88% as against 24 rakes a month before. NMDC had decreased the prices by 11% in beginning of Feb’19. However, later on 23rd Feb’19, the miner raised prices upto INR 490/MT from C.G Baila mines.

JSW iron ore purchases from Karnataka e-auction rise 36% in Feb’19

JSW Steel’s iron ore purchases from Karnataka e-auctions increased by 36% to 1.97 MnT in Feb'19 compared to 1.45 MnT in Jan'19.

Out of 1.97 MnT iron ore sourced by JSW, NMDC supplied 1.04 MnT up by 16% against 0.9 MnT last month and thus contributed around 53% of total JSW sourcing. NMDC Kumaraswamy had decreased prices towards the beginning of Feb’19 but later towards the end of the month, the miner increased prices by INR 400/MT each in fines and lumps. According to sources report, iron ore operations are still on hold at NMDC's Donimalai mine amidst case reserved for final judgement.

JSW Steel’s iron ore sourcing from private mines increased by 69% to 0.93 MnT in Feb’19 as against 0.55 MnT in Jan’19.