Business Standard reported that JSW management has conveyed to analysts that it has procured 6.4 million tonnes of iron ore (it requires 1.5 million tonnes a month to run at full capacity) at a blended price of INR 3,050 a tonne.

As per report, not only have supplies improved, but the prices of iron ore have also come off in recent times.

The company has conveyed that prices are down INR 400 a tonne, while analysts said that the fall is closer to INR 1,000 a tonne.

With this supply, JSW can run at 80% capacity utilization in the fourth quarter, compared to 63% in October.

Edelweiss Financial Services, in a report after a management meet, said that “Led by this, crude steel production volume can ramp up from 1.7 million tonnes in Q2 of 2011-12 to 2 million tonnes and 2.2 million tonnes in Q3 and Q4 of 2011-12, respectively.”

(Sourced from BS)