- Odisha’s iron ore production drop by 3% y-o-y in CY25
- Major miners see a sharp hike in dispatch volume
Odisha’s iron ore dispatch declined by 7% y-o-y to around 119 million tonnes (mnt) during the 9MFY26 period, compared with 128 mnt recorded in the corresponding period last year, as per data maintained with BigMint. The decline was largely attributed to a combination of labour unrest, transportation bottlenecks, and adverse weather conditions, which disrupted smooth movement from major mining belts in the state.
On a monthly basis, December 2025 dispatch stood at 15.7 mnt, registering an increase of 9% from 14.39 mnt in November 2025, indicating some recovery in movement toward the end of the year. Meanwhile, December dispatch hiked by 17% on a y-o-y basis, with 13.46 mnt recorded in December 2024.
Factors impacting dispatch movement
The dispatch activity during the period was significantly hampered by union strikes across key mining clusters, particularly affecting loading and evacuation operations. Additionally, transportation challenges, including limited rake availability and congestion on railway routes amid heavy and prolonged monsoon this year, further restricted dispatch volumes.
The situation was compounded by heavier-than-usual monsoon rainfall, which disrupted mine operations and infrastructure for a prolonged period compared to the last few years. A prominent miner said, “Even after the monsoon, rake movement remained inconsistent due to backlogs created during the disruption period.”
Production scenario in CY25
Odisha’s iron ore production dropped by 3% y-o-y to around 153 mnt in CY25, marginally lower than 157.5 mnt recorded in the previous calendar year. Of the total output, iron ore fines accounted for approximately 111 mnt, while lumps production was estimated at around 42 mnt.
Market sources indicated that production was less impacted than dispatch, as miners continued to focus on building inventories at pitheads amid evacuation challenges. “Production capability was not a major issue; it was the evacuation and movement that constrained overall volumes,” a market participant observed.
Company-wise dispatch trends
Company-wise data revealed a broad-based decline in dispatch volumes among major iron ore producers in Odisha. Odisha Mining Corporation (OMC) recorded a 12% y-o-y drop in dispatch to 26.11 mnt in 9MFY26, compared with 29.66 mnt in the same period last year. The Guali, Jhilling, and Koira mines witnessed a sharp fall in movement due to transportation issues and labour strikes.
Rungta Mines saw dispatch decline by 16% y-o-y to 13.17 mnt, while JSW Steel’s dispatch plunged sharply by 58% to 6.14 mnt, mainly due to the surrender of the Jajang mine, which significantly reduced the company’s production and dispatch capacity.
Vedanta ESL’s dispatch also dropped by 28% y-o-y to 3.18 mnt, reflecting lower evacuation from its captive mines during the period. The miner also purchased the raw pellet from the merchant market for its steel plants in the early FY26 months.
Meanwhile, a few miners bucked the trend. Tata Steel, SAIL, Jindal Steel & Power (JSPL), and SN Mohanty Mines reported an 8–30% increase in dispatch volumes during 9MFY26, supported by improved operational efficiency along with higher EC limits for this year. Additionally, GVPR Engineers and Grewal Minerals contributed a noticeable increase to Odisha’s overall dispatch volume this year.
Outlook for Q4FY26
Looking ahead, iron ore dispatch from Odisha is expected to remain supportive in Q4FY26, backed by higher production levels, easing logistical constraints, and miners aiming to utilise their annual EC clearances before the fiscal year-end. Demand from the domestic steel sector remains firm, which is likely to encourage stronger dispatch momentum.
A market participant added, “With weather-related disruptions behind us and better rake availability expected, dispatch volumes should improve steadily in the final quarter.”
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