Odisha, India’s largest iron ore producing state, recorded merchant dispatches at 4.62 million tonnes (mn t) in Nov’21, up by 22% m-o-m against 3.78 mn t in Oct’21. The figures exclude movement for exports and dispatches from captive mines of SAIL, JSW (Gonua and Narayanposhi), AM/NS India, Kashvi, Narbheram and Tata Steel. The dispatches increased on the back of falling Odisha prices.
The dispatches increased for the month due to rising demand from sponge players who preferred booking iron ore lumps last month due to steep rise in pellet offers following the coal price rally. SteelMint’s iron ore lumps (5-18mm, Fe 63%) index fell by 4% m-o-m to a monthly average of INR 10,050/t ex-mines in Nov’21.
Highlights
- JSW Steel recorded the highest dispatches at 1.1 mn t from its two Odisha merchant mines in Nov’21. The dispatches increased m-o-m compared to 0.98 mn t in Oct’21.
- OMC, the state-owned miner, recorded a 26% rise in dispatches to 1.08 mn t in Nov’21 as against 0.86 mnt in Oct’21 which could have been the outcome of active responses received in its past auctions.
- Rungta Mines dispatches stood at 1.15 mn t for the month, increasing sharply by 54% m-o-m against 0.75 mn t in Oct’21.
- Dispatches from Essel Mining moved down to 0.21 mn t in Nov’21 as compared to 0.31 mn t in Oct’21.
India: Odisha iron ore movement in Nov’21 and Oct’21
Figure exclude SAIL, Tata & JSW Steel (Narayanposhi) & AMNS movements
Qty in mn t
Source: SteelMint
Provisional data
Outlook
With pellet prices coming under pressure on subdued export bookings in Nov’21, sponge players turned active in booking pellets in the domestic market over iron ore. SteelMint estimates the weighted average price of pellets (Fe 63%) in Raipur at INR 11,500/t in November as against INR 13,350/t in Oct – a drop of close to 14%.
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