Indian iron ore dispatches for CY’17 recorded an increase of 6.2% Y-o-Y. It witnessed an increase to 125.29 MnT in CY’17 as against 118.12 MnT in CY’16. The data excludes iron ore movement from SAIL, TATA, imports, and exports.
Major highlights of CY’17 Indian iron ore movement:
1. JSW Steel (Vijayanagar) plant increased their iron ore sourcing by 15% Y-o-Y and sourced 23 MnT iron ore in 2017 against 20MnT in 2016. JSW (Dolvi) procured 5.5 MnT in 2017 against 3.8 MnT in 2016. JSW Steel – India’s largest steel maker crude steel output increased to 16.27 MnT in FY’18 as against 15.8 MnT in FY’17.
2. KIOCL increased iron ore procurement by more than two-fold Y-o-Y. In 2017 it procured 1.67 MnT against 0.69 MnT in 2016. KIOCL’s production witnessed at 2.32 MnT, up by 59% Y-o-Y as against production in FY’17, recorded at 1.46 MnT.
3. Essar Steel Increases its Iron ore sourcing by around 13% Y-o-Y in CY’17. Steelmakers sourcing from NMDC increased 22% Y-o-Y to 7.1 MnT in CY’17.
Reason for the increased Iron ore Movement -:
1. Odisha contributed 56% of total iron ore movement-: Odisha iron ore dispatches witnessed an increase of 9% in dispatches to 69.89 MnT in CY’17 as against 63.88 MnT in CY’16. Followed by Karnataka 29.02 MnT, Chhattisgarh (18.83 MnT), Jharkhand (6.85) MnT and Goa (0.29 MnT). Amid increased production, dispatches from merchant mines also moved up.
2. C.G state Increased its iron ore dispatches by 6% Y-o-Y -: The iron ore dispatches from Chhattisgarh recorded an increase of 6% to 18.83 MnT in CY’17 as compared to 17.69 MnT in CY’16. Major destinations for Chhattisgarh iron ore was – Andhra Pradesh (14.6 MnT), Chhattisgarh (1.94 MnT)and Maharastra (1.87 MnT). NMDC recorded considerable increase in its production volumes in CY’17.
3. Karnataka iron ore e-auction sales increased-: The iron ore dispatches from Karnataka e-auctions recorded a slight increase to 29.02 MnT in CY’17 as compared to 28.78 MnT in CY’16. Major destinations for Karnataka iron ore were – Karnataka (26.8 MnT), Andhra Pradesh (1.19 MnT).
India Iron Ore Dispatches in CY17-:
| Load State | ||||||||
| Odisha | Karnataka | Chhattisgarh | Jharkhand | Andhra Pradesh | Goa | Total | ||
| Unload State | Odisha | 30.63 | – | 0.00 | 0.74 | – | – | 31.37 |
| Chhattisgarh | 10.21 | 0.02 | 1.94 | 1.43 | – | – | 13.60 | |
| West Bengal | 12.38 | – | 0.01 | 2.23 | – | – | 14.62 | |
| Jharkhand | 4.98 | – | – | 1.64 | – | – | 6.62 | |
| Andhra Pradesh | 4.07 | 1.19 | 14.64 | 0.01 | 0.42 | – | 20.33 | |
| Maharastra | 3.74 | 0.03 | 1.87 | 0.18 | – | – | 5.84 | |
| karnataka | 2.57 | 26.81 | – | 0.62 | – | 0.09 | 30.09 | |
| Tamil Nadu | 0.47 | 0.51 | 0.03 | – | – | – | 1.01 | |
| Trader | 0.38 | 0.25 | 0.27 | 0.00 | – | 0.20 | 1.10 | |
| Uttar Pradesh | 0.28 | – | 0.06 | – | – | – | 0.34 | |
| Madhya Pradesh | 0.10 | – | – | – | – | – | 0.10 | |
| Gujarat | 0.04 | 0.06 | – | – | – | – | 0.10 | |
| Delhi | 0.03 | – | – | – | – | – | 0.03 | |
| Goa | – | 0.16 | – | – | – | – | 0.16 | |
| Total | 69.89 | 29.02 | 18.83 | 6.85 | 0.42 | 0.29 | 125.29 | |
Note: Figure does not include SAIL, TATA, Export & Import
Goa iron ore dispatches are those of e-auction
Quantity in MnT
Source-SteelMint Research
What may happen in 2018?
Few Odisha mines like Essel (Jilling) and RP Sao asked to resume operations, Odisha’s iron ore production and dispatches may augment as they have a total capacity of around 12 MnT p.a.
Mines in Karnataka got the permission from Apex Court to raise iron ore excavation cap from 30 MnT to 35MnT. JSW Steel has already announced that it may start production from few of its mines that it won in ‘C’ category block auctions in FY’19, so the steelmaker may fulfill some of its requirement from its captive mines.
It may possible that increase iron ore supply in the market may put iron ore prices under pressure.
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