As per SteelMint’s analysis, iron ore movement across major producing states of the country was recorded at 56.9 MnT in H1 FY17. The figure has been compiled on the basis of movements made via railways, trucks, Karnataka and Goa e-auction data and import data as per customs. The figure indicated does not include the captive iron ore movement of SAIL & Tata Steel and movement for exports.
State-wise iron ore movement analysis:
Iron ore dispatches from Odisha up by 13% in Sept – Odisha iron ore dispatches in domestic market have increased by 13% M-o-M to 5.2 MnT in Sept’16. However on quarterly basis, the figure has fallen from 15.7 MnT in Q1 FY17 to 14.2 MnT in Q2 FY17. Lesser production over monsoons, logistics issues and increase in low-grade iron ore export from Odisha resulted in fall in dispatches in last quarter.
Karnataka iron ore sales up by 37% in Sept – In Sep’16, 2.64 MnT iron ore was sold in Karnataka e-auctions against 1.93 MnT in Aug’16. Comparing on quarterly basis, sales has moved up from 6.4 MnT in Q1 FY17 to 6.6 MnT in Q2 FY17. Out of 6.4 MnT iron ore sold in Q2 FY17, share of NMDC was 47% (3.1 MnT). JSW Steel remains the largest buyer at 4.5 MnT followed by BMM Ispat and MSPL.
Chhattisgarh iron ore movement increases in Sept – Increased iron ore sourcing of Vizag Steel, Essar Steel, Chhattisgarh based sponge units and KIOCL from NMDC, Chhattisgarh led to increased iron ore movement from Chhattisgarh last month. Comparing on quarterly basis, iron ore movement from Chhattisgarh has strengthened from 4.1 MnT in Q1 FY17 to 4.3 MnT in Q2 FY17.
Movement from Jharkhand up in Q2 FY17 – Iron ore movement from Jharkhand increased by 33% Q-o-Q to 1.2 MnT in Q2 FY17. It is to be noted that JSW Steel resumed iron ore sourcing from Jharkhand (Rungta Mines) in Q2 FY17 for its Vijayanagar plant.
Indian iron ore imports at 1.6 MnT in Q2 FY17 – In Q2 FY17 Indian imported 1.6 MnT iron ore and pellet imports remained nil. JSW Steel was the largest importer at 0.9 MnT followed by Jindal SAW and Essar Steel. In Q1 FY17, iron ore and pellet imports were recorded at 1.33 MnT and 0.1 MnT respectively.
Pellet exports from India increase sharply in Q2 FY17 – Amid improved pellet demand from China, higher realization than domestic market and high pellet premium pushed Indian pellet export in Q2 FY17. Indian pellet export increased from 0.8 MnT in Q1 FY17 to 1.9 MnT in Q2 FY17.
However iron ore export from Goa declined in Q2 FY17 over monsoons resulting in drop in overall exports. Iron ore export from India was recorded at 1.9 MnT in Q2 FY17 against 5 MnT in Q1 FY17. Iron ore exports from Odisha gained momentum in Q2 FY17.
Since Q2 FY17 did not notice any e-auctions in Goa owing to monsoons therefore movement remained nil.
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