India: Odisha Iron Ore Production Fell 8% M-o-M in Jun’17

India’s largest iron ore producing state – Odisha which contributes nearly 50% share in country’s ore output has registered 8% drop in its monthly iron ore production in Jun’17. The state produced 8.11 MnT iron ore in Jun’17 against 8.81 MnT in May’17.

Odisha’s iron ore production has moved up by 5% Y-o-Y which was 7.69 MnT in Jun’16. There was a marginal increase of 1% Q-o-Q as well. The state produced 25.98 MnT iron ore in Q1-FY18 against 25.84 MnT in Q4-FY17.

An increase of 5% was observed Y-o-Y too against the quantity of 24.76 MnT production in Q1-FY17.

Rungta Mines – Odisha’s largest iron ore producer registered an output of 1.86 MnT in Jun’17, up 4% M-o-M. Other major merchant iron ore producers were Serajuddin Mines – 0.96 MnT (down 24% M-o-M) and KJS Ahluwalia – 0.66 MnT (down 10% M-o-M).

State-owned miner – Orissa Mining Corporation (OMC) produced 0.36 MnT iron ore last month compared to 0.47 MnT in May’17 down 23% M-o-M.

Tata Steel’s iron ore production from Odisha stood at 1.08 MnT in Jun’17 (down 8% M-o-M) and that of SAIL was recorded at 0.54 MnT (down 7% M-o-M).

Mine-wise Odisha iron ore production: Jun’17 Vs May’17

Quantity in MnT & includes material type of fines, lump & concentrate
Provisional data
Source: Govt. of Odisha

Iron ore dispatches from merchant mines moved down in Jun’17 – Iron ore dispatch by Odisha based merchant mines stood at 5.91 MnT in Jun’17 against 6.11 MnT in May’17. The figures exclude movement for export and dispatches of captive miners – SAIL, Tata Steel & JSPL.

Major merchant miners in Odisha reduced iron ore prices twice in Jun’17. The miners reduced lump prices up to INR 500/MT and fines prices up to INR 150/MT M-o-M in Jun’17. OMC’s iron ore e-auction conducted on 5 Jul’17 fetched poor response with entire quantity remaining unsold.