Odisha, India’s largest iron ore producing state, recorded output of 14.85 million tonnes (mn t) in May’21, up by 10%, as against 13.47 mn t in Apr’21, according to provisional data from the Odisha government maintained with SteelMint. The figures include fines, lumps and concentrate.
- JSW Steel Ltd remained the leading producer of iron ore in the state, at 2.85 mn t, up by 40% on a monthly basis as against 2.03 mn t in Apr’21. During this month, the company is reported to have achieved its average steel capacity utilisation of 91%.
- State-owned miner OMC recorded the second-highest iron ore production at 1.65 mn t for May’21 as compared to 1.82 mn t in Apr’21. OMC has sought approval for expanding the iron ore capacity of the Jilling Langlota mine in Odisha’s Keonjhar district from 6.28 mn t to 10 mn t per annum.
- Production from Serajuddin Mines was recorded at 1.35 mn t, increasing by 36% m-o-m in May’21.
- AM/NS India recorded a marginal increase in iron ore production in May’21 at 0.48 mn t.
- Miners who recorded a decline in production volumes last month were Sarda Mines, Essel Mining, Geetarani Mohanty, Kashvi and DR Patnaik
Quantity in MnT
Source: SteelMint
Lumps scarce: Lumps are scarce now compared to fines and therefore their prices touched new highs recently. Limited availability of high-grade iron ore in Odisha has widened the price gap between grades.
On the other hand, Odisha’s Directorate of Mines has sought a clarification from the state government’s Department of Steel and Mines on the commencement of assessment to measure shortfall in mineral dispatches from the auctioned leases vis-a-vis the minimum dispatch requirement specified in the Mineral Concession Rule (MCR), 2016, SteelMint learnt from government sources.
Outlook
Scarcity is being felt in the merchant market. The monsoon, which has arrived in large parts of the country, is a big price influencer too. Traditionally, in the Jul-Aug period, overall production recedes by around 10%-20%.
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