India: Iron ore movement dips 2% m-o-m in Nov'21

India's iron ore movement (excluding exports) across major producing states was recorded at 9.39 million tonnes (mn t) in Nov'21, witnessing a marginal decrease of 2% m-o-m as against 9.59 mn t in Oct'21. The figures are compiled on the basis of movements made via railways and trucks from Odisha, Karnataka, Chhattisgarh as well as import data obtained from Customs.

The figures exclude exports and captive iron ore movements of SAIL, Tata Steel and JSW Steel (Jajang and Narayanposhi) but include movements from JSW Steel (Jajang and Nuagaon), AM/NS India and Sarda mines.

State-wise iron ore movement analysis

• Odisha iron ore dispatches up 33%: Odisha's total iron ore dispatches were recorded at 5.52 mn t in Nov'21, up 33% m-o-m as compared to 4.16 mn t in Oct'21. The state recorded merchant dispatches at 4.62 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 and due to rising demand from sponge players who preferred booking lumps last month due to a steep rise in pellet offers following the coal price rally.
  
  
• Karnataka iron ore e-auction sales down 52%: Karnataka recorded a 52% m-o-m decline in its iron ore e-auction sales volumes in Nov'21. The total allotted iron ore quantity in November was 1.57 mn t as against 3.24 mn t in October. Preference for pellets seems to have lowered iron ore lumps procurement by mills in November. Notably, SteelMint recorded pellet trade volumes of around 90,000 tonnes (t) in Nov'21 as against around 45,000 t in Oct'21. In addition, fewer auctions conducted amid festive holidays kept procurement on the lower side.
  
  
• NMDC's iron ore rake movements from Chhattisgarh drop 6%: Dispatches from Chhattisgarh were recorded at 2.20 mn t in Nov'21 against 2.18 mn t in Oct'21. Government-owned NMDC recorded iron ore rake movements from Chhattisgarh at 361 in Nov'21, down 6% against 385 in Oct'21, according to data maintained with SteelMint. The figures include movements within Chhattisgarh and to other state-based units but exclude supply to AM/NS India through slurry pipelines.
  
  
• Iron ore imports resume after a 10-month gap: India's iron ore imports resumed after a long gap of 10 months in Nov'21. The volumes stood at 0.10 mn t last month as against 0.14 mn t seen in Jan'21, according to vessel line-up data maintained with SteelMint. A sharp correction in global iron ore prices resulted in the resumption of import bookings.
  
  
• Iron ore export shipments drop to multi-year low: India's iron ore export shipments witnessed a sharp fall of 76%, m-o-m in Nov'21 to 86,782 t against 365,172 t in Oct'21, according to vessel line-up data maintained with SteelMint. Notably, this is the lowest export volume seen since SteelMint started maintaining data from May'16. Steel production cuts in China triggered a sharp decline in iron ore shipments in recent months which, in turn, lowered demand for raw material (especially low-grade ore of Fe 57-58% and below grades).