The country's leading steel manufacturer, JSW Steel has decided to import around 6 million tonnes (MT) of iron ore in the current fiscal from overseas market, a company statement said here.
JSW imported its first iron ore shipment in capesize vessel with 1,70,000 tonnes of high grade iron ore in the last week from South Africa at Krishnapatnam Port. Three more shipments of iron ore in capesize vessels are planned to reach Indian ports in next few days, the release said.
Indian steel manufacturers are losing out the most comparative advantage of availability of local iron ore and are constrained to resort to imports, denting the competitiveness of steel manufacturing in India.
"The recent closure of mines in Odisha, delay in opening up of mines in Karnataka and Goa had resulted in acute shortage of iron ore in the country. We have decided to import half a million tonne of high-grade ore every month to maintain the capacity utilisation at optimum level," JSW Steel and Group CFO Seshagiri Rao said.
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There has been a sharp decline to 77 per cent in capacity utilization in Indian steel industry due to shortage of iron ore in FY 2013-14 from 88 per cent in 2010-11.
Iron ore production in India fell significantly during the course of past few years i.E. From a level of 218 million tonnes (MT) in 2009-10 to only 144 MT in 2013-14 which is further expected to drop to 100 MT in FY 2014-15 against the demand of 140 MT.