JSW Steel plans to acquire an iron ore terminal in Tamil Nadu

Published: Jan 16, 2015 10:03 (GMT+8)

Save

This is based on the company’s move to integrate its operations backward, and at the same time the company is also planning to save cost by importing the key raw material.

Author: Paul Ploumis15 Jan 2015 Last updated at 07:23:53 GMT

NEW DELHI (Scrap Monster): This is based on the company’s move to integrate its operations backward, and at the same time the company is also planning to save cost by importing the key raw material. The company, Sical logistics, operates an iron ore terminal, which has a capacity of 6 million tonnes of iron ore per year, and the mill is located at the government owned, Ennore Port.

The existing infrastructure of the iron ore terminal can be further expanded, so that the terminal can handle 12 million tonnes of iron ore per year, in order to meet the growing volumes. The JSW Steel, which is owned by Sajjan Jindal, is highly depending on imported iron ore, as the company doesn’t own any iron ore mines in the country, and the availability of the steel making raw material in India is declining as the court has imposed constraints over the iron ore production in the mines, in order to prevent illegal mining. The company imports about half of its iron ore requirements, which is 20 million tonnes per year.

According to the analysts, Sical Logistics, is a good option for JSW Steel, V.G Siddhartha Hedge, the company which is better known as the promoter of the Café Coffee Day, which also own the majority of shares in the Sical Logistics, is in charge with the discussions regarding the sale. The spokesperson, of Sical logistics, declined to comment regarding the matter, and stated that, the company is not looking for media attention at this phase of the discussion.

The Executives of JSW Steel stated that, the company is planning to negotiate hard on the deal. Sical Logistics had spent about 360 crore on building the terminal in the first phase of 6 million tonnes capacity, and the company will require another 120 crore to expand the capacity of the terminal to 12 million tonnes. JSW Steel had built an iron ore jetty, with a capacity 10 million tonnes for 180 crore, in Goa. And also a iron ore terminal of 20 million tonne capacity based in Ratnagiri, for 700 crore

JSW Steel iron ore

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

54 mins ago

SMM Data Shows Drop in Battery-Grade Nickel Sulphate Prices on October 12

According to SMM data, on October 12, the SMM average price of battery-grade nickel sulphate fell from the previous day.

54 mins ago

1 hour ago

[SMM Nickel Flash News] Indonesia Launches US$10.2 Billion Downstream Projects and First EV Battery Export

Indonesia launched 11 downstream projects worth US$10.2 billion at Indonesia Weda Bay Industrial Park (IWIP), North Maluku, on October 8, 2026, alongside the country's first EV battery export. The programme includes four projects entering commercial operations and seven beginning construction. The operational projects are PT Blue Sparking Energy, PT REPT Battero Indonesia, PT Pioneer Aluminium Industries, and PT XCMG Indonesia Manufacturing. The seven new projects are PT Guang Ching Nickel Cobalt, PT Inno Prima Material, PT Tinci Materials Indonesia, PT Weda Bay Aluminium, PT Bintang Karya Aluminium, PT Flat Solar Energy Indonesia, and PT Foton Guangqing Motor Indonesia, covering nickel and cobalt processing, battery materials, aluminium, photovoltaic glass, and electric vehicles.

1 hour ago

2 hours ago

[SMM Stainless Steel Flash] Nippon Steel cuts October stainless prices as stronger yen lowers alloy costs

Nippon Steel has cut October prices across all stainless products as a stronger yen reduced alloy procurement costs. It is the third straight cut for 300-series grades and the first in four months for 400 series, with the nickel benchmark at an eight-month low. The move contrasts with October increases by mills in Taiwan (PoC).

2 hours ago