Iron ore dispatch by Odisha based merchant mines fell further in Feb’17 and was recorded at 4.47 MnT against 5.06 MnT in Jan’17. The figures exclude movement for export and dispatches of captive miners – SAIL, Tata Steel & JSPL.This is for the 4th consecutive month that Odisha merchant mine’s iron ore dispatches to domestic market have witnessed downturn.
Among Odisha’s merchant iron ore miners – Rungta Mines dispatched highest quantity of ore followed by Serajuddin Mines and OMC.
Rungta Mines’ iron ore dispatches fell 4% M-o-M to 1.37 MnT in Feb’17 compared to 1.43 MnT in Jan’17.
Serajuddin Mines dispatched 0.88 MnT iron ore in Feb’17 compared to 0.83 MnT in Jan’17, up 6% M-o-M. Iron ore dispatches of state owned miner – OMC reduced by 11% M-o-M to 0.34 MnT in Feb’17.
Reasons behind fall in iron ore dispatches of Odisha based merchant mines –
1. Increased exports – High iron ore prices in China in Feb’17 kept exports high. In the month of Feb’17, iron ore fines (Fe 62%) index hit highest mark of USD 95/MT, CFR China. Iron ore export from east coast based ports (namely Paradip, Vizag, Dhamra and Haldia) stood at 1.22 MnT in Feb’17 against 0.75 MnT in Jan’17.
2. Limited rake availability for domestic market – Trade participants highlighted that rake availability is easier for export than in domestic market. This has also hampered the domestic iron ore movement.
3. Temporary suspension of dispatches from two major mines – Towards beginning of Feb’17, Odisha govt temporarily suspended iron ore dispatches from two mines – KJS Ahluwalia & Kaypee Enterprises owing to stock verification issues. Later in the last week of Feb’17, dispatches from both the mines resumed. This resulted in decline in iron ore dispatches from these two mines.
Odisha’s merchant mines iron ore dispatches – Feb’17 vs Jan’17
|
Mines Name |
Feb’17 |
Jan’17 |
| Rungta Mines | 1.37 | 1.43 |
| Serajuddin | 0.88 | 0.83 |
| OMC | 0.34 | 0.38 |
| Essel Mining | 0.32 | 0.29 |
| A.M.T.C | 0.20 | 0.14 |
| Mid East Integrated Steel | 0.19 | 0.18 |
| KJS Ahluwalia | 0.19 | 0.60 |
| KN Ram | 0.18 | 0.18 |
| Indrani Patnaik | 0.16 | 0.30 |
| Kaypee Enterprises | 0.15 | 0.44 |
| Others | 0.49 | 0.29 |
| Grand Total | 4.47 | 5.03 |
Fig in MnT
Excluding movement for export
Provisional data
Source: Odisha govt.
So far in this fiscal (till Feb’17), Odisha based merchant miners have dispatched 55.5 MnT iron ore.
Leave a Reply