India: Odisha iron ore dispatches down 26% m-o-m in Feb'21

Odisha- India's largest iron ore producing state recorded merchant iron ore dispatches at 4.48 mn t in Feb'21, down 26% against 6.03 mn t in Jan'21. The figures exclude movements for export and dispatches from captive mines- SAIL, JSW (Gonua &Narayanposhi) & Tata Steel and include dispatches from Sarda Mines, JSW Steel (Jajang & Nuagaon) & AM/NS, India movements.

Key highlights

• JSW Steel recorded the highest dispatches at 1.10 mn t for the month, down 18% against 1.34 mn t in Jan'21.
  
  
• OMC, the state-owned miner, recorded a 32% fall in dispatches to 0.67 mn t for Feb'21 as against 0.98mnt in Jan'21.
  
  
• Few of the auctioned mining leases like AM/NS India and Kashvi have reported increase in dispatches.AM/NS iron ore dispatches were recorded at 0.49 mn t for Feb'21 as compared to 0.46mn t a month ago (Jan'21).Kashvi recorded iron ore dispatches at 0.18 mn t as against 0.07 mn t in Jan'21.
  
  
• Dispatches of iron ore from Rungta Mines were down by 43% to 0.45 mn t in Feb'21, as compared to 0.79 mn t in Jan'21.
  
  
• Dispatches from Sarda mines have come down sharply to 0.16 mn t, down 78% m-o-m. Seven iron ore miners, including Sarda mines, have been issued with steep penalties for violating their EC limits on a pro-rata basis. Sarda Mines has been asked to pay a differential amount of Rs 2056.4 crore, as reported by SteelMint towards end Jan'21.
  
  

India- Odisha Iron ore Dispatches in Feb'21 & Jan'21

Figure Included, Sarda Mines, JSW Steel (Jajang & Nuagaon) & AMNS Movements
Figure excluded SAIL, Tata & JSW Steel (Gonua &Narayanposhi) captive movement
Qty in mn t
Source: SteelMint
Provisional Data

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, OMC's initiation of iron ore auction from Guali and Jilling mines is likely to balance out the monthly volumes of production and dispatches.