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|JSW Steel's Low Productivity Due To Inferior Grades Of Iron Ore|
|= Crude steel production in February at 610,000 tonnes =|
India's JSW Steel Limited reported monthly crude steel production of 610,000 tonnes in February 2012, showing a growth of 69,000 tonnes (13%) over corresponding month of previous year. Rolled products (flat) increased by 1% to 447,000 tonnes while rolled products (long) rose by as much as 103% to 152,000 tonnes. The cumulative crude steel production for 11 months of the financial year was 6.77 million tonnes with a growth of 15% over previous period.|
Mr.Seshagiri Rao, Joint Managing Director & Group CFO said, "The crude steel production during February 2012 was severely impacted due to usage of inferior grades of iron ore. As the stock pile of 25 million tonnes is getting exhausted, the quality of iron ore being offered in E-auction is deteriorating substantially. Further certain iron ore in E-auctions contained high Alumina, Silica, Manganese and Low Fe which led to poor Sinter quality, high slag formation and low productivity in the Blast Furnaces."
The quantity of iron ore sold in the E-auction during entire month of February 2012 was only 1.17 million tonnes in all 6 E-auctions together as against the industry requirement of 3 million tonnes per month. Even after paying higher prices in E-auctions, the availability of quality iron ore is a challenge, threatening the continuation of steel production efficiently. Steel industry in Karnataka region, therefore, is not only facing shortage of iron ore but poor quality of iron ore is impacting the equipment, productivity and efficiency.
Since Central Empowered Committee (CEC) recommended opening up of clean mines (Category A), the company expects that the Honourable Supreme Court will permit mining at least in Category A mines.
|last modified : Mon 12 Mar, 2012 [09:56]|