Odisha – India’s largest iron ore producing state produced 12.05 mn t in Jan’21, up marginally as against 11.86 mn t in Dec’20, according to the provisional data of the Odisha Govt. maintained by SteelMint. The figures include – fines, lumps and concentrate.
JSW Steel’s production stood at 1.83 mn t, down 16% on a monthly basis as against 2.17 mn t in Dec’20. However,JSW Steel’s crude steel output was recorded at 1.43 mn t in Jan’21, against 1.41 mn t in Dec ’20. JSW has reported an increase in capacity utilization to 96% in Jan ’21, as per the company’s press release in BSE.
Tata Steel recorded a fall in output for the month to 1.58 mn t as compared to 1.69 mn t in Dec ’20.
State owned miner – OMC recorded output at 1.58 mn t for the month of Jan’21 as compared to 1.77 mn t in Dec’20. Odisha Govt. has allocated Guali and Jilling iron ore mines to OMC with an objective to increase iron ore production. These mines have a combined production limit of 12 mnt.
AM/NS India recorded a 26% increase in iron ore production in Jan ’21 at 0.63 mn t.AM/NS inked a mine development and production agreement (MDPA) for its Ghoraburhani Sagasahi block in Feb’21 and company’s production is expected to increase further with commencement of production from this mine having an EC limit of 7.16 mn t.
Production from Serajuddin mines increased by 61% m-o-m in Jan’21 to 0.38 mn t.
Outlook-A couple of non-auctioned miners have exhausted their EC limit for this fiscal which has slightly tightened availability of lumps in Odisha merchant market, SteelMint learned from sources. However, increased output from other auctioned mining leases is likely to balance out the monthly volumes, SteelMint understands
SteelMint’s weekly index for Odisha iron ore fines (Fe 62%) is assessed INR 5,200/t (ex-mines, including Royalty, DMF & NMET), which is down by INR 700/t m-o-m.
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