Odisha, India’s largest iron ore producing state, recorded merchant dispatches at 3.93 million tonnes (mn t) in Oct’21, up by 16% m-o-m against 3.38 mn t in Sept’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 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 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 10,450/t ex-mines in October. On the other hand, monthly average Barbil pellet prices increased to INR 12,100/t (loaded to wagon) in Oct’21 from INR 10,490/t in Sept’21. Also, SteelMint’s iron ore fines (Fe 62%) index fell by 6% m-o-m in Oct’21.
In addition, with the offset of the rainy season, Odisha’s iron ore production in October recovered from the lower levels seen in Sept’21.
Highlights
- JSW Steel recorded the highest dispatches at 0.98 mn t from its two Odisha merchant mines in Oct’21. However, it decreased m-o-m compared to 1.09 mn t in Sept’21.
- OMC, the state-owned miner, recorded a 48% rise in dispatches to 0.86 mn t in Oct’21 as against 0.58 mnt in Sept’21 which could have been the outcome of active responses received in its past auctions.
- Rungta Mines’ dispatches stood at 0.75 mn t for the month, increasing sharply by 52% m-o-m against 0.49 mn t in Sept’21.
- Dispatches from Essel Mining moved down to 0.31 mn t in Oct’21 as compared to 0.42 mn t in Sept’21. Notably, Essel’s Koira iron ore mining lease expired on 26 Aug’21.
India: Odisha iron ore movement in Oct’21 and Sept’21
Figure excluded SAIL, Tata & JSW Steel (Narayanposhi) & AMNS movements
Qty in mn t
Source: SteelMint
Provisional data
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