India's iron ore production rises over 10% y-o-y in Jan-Jul'23

• Odisha top producer with around 94 mnt; 55% of total production
  
  
• Production in Karnataka surges 20%, as SC eases restrictions
  
  
• NMDC's output edges up around 10%, Rungta, Lloyds witness sharp growth
  
  

Iron ore production in India increased by 12% y-o-y in the first seven months of calendar year 2023 (CY'23). Total production in January-July this year stood at 169 million tonnes (mnt), as per SteelMint estimates, an increase of nearly 20 mnt from 150.9 mnt in the corresponding period of last year.

India's iron ore production reached around 250 mnt in CY'22, with PSU miners increasing their production substantially and higher volumes from the auctioned mines and those operated by the integrated steel players against the backdrop of a 6% y-o-y growth in crude steel production.

Notably, the auctioned mines accounted for around 1/4th of the country's iron ore production in the preceding fiscal.

State-wise production

Odisha, the top iron ore producing state in India, held on to its share of over 55% of the country's total production in January-July (7MCY'23), with cumulative output reaching around 94 mnt, higher by about 12% on the year from around 84 mnt in the same period of last year.

While PSU miners in the state have raised their production levels in the post-auctions scenario, the primary mills and merchant miners, too, showed a noticeable uptick in volumes.

Importantly, iron ore production in Karnataka increased by over 20% y-o-y to over 24 mnt compared with just around 20 mnt in the year-ago period. This is largely due to the removal of restrictions on sales and exports and volumes trickling in from auctioned mines in the state.

Chhattisgarh, too, recorded a nearly 7% y-o-y increase in production to around 27 mnt in 7MCY'23 from a little over 25 mnt in the year-ago period. However, iron ore production in Jharkhand, largely accounted for by the primary steel players, remained stable at over 15 mnt during the period under review.

It deserves mention that production from other states, particularly Maharashtra, has grown substantially during the period contributing to the overall rise in output.

Top iron ore producers

PSU miner NMDC, which is India's leading iron ore producer, recorded total output at over 27 mnt in 7MCY'23; around 10% higher y-o-y. The miner targets to achieve production of nearly 50 mnt in the ongoing fiscal. On the other hand, OMC's iron ore production remained stable at around 18 mnt. OMC aims to churn out a total of around 34 mnt of production in the current fiscal. The two PSU merchant miners account for over 30% in the country's total production.

Notably, Rungta Mines increased its production by nearly 30% y-o-y to 10.5 mnt, with fresh volumes from newly operationalised mines amid forward integration. JSW Steel, too, raised production by around 12% to over 16 mnt with gradual easing of logistical constraints in Odisha.

SAIL and Tata Steel witnessed a marginal rise in production to 20 mnt and 22 mnt, respectively, while JSPL, AM/NS and Vedanta were the other major producers.

Notably, Maharashtra based Lloyds Group witnessed a sharp uptick in production by over 75% to 5.1 mnt in 7MCY'23 compared with the same period last year.

Outlook

India's crude steel production is expected to increase by around 10 mnt in the ongoing fiscal and iron ore production is likely to rise by around 20 mnt, as per SteelMint estimates, thanks to increased production in western India. Around 30 of the 100-odd auctioned mines have started operations and many more are expected start in the coming months. This will surely bolster the country's iron ore production needed to sustain the phenomenal surge in steel-making capacity.

SteelMint hosting global conference on iron ore in Kolkata

SteelMint is hosting a joint international conference on iron ore, steel & DRI and coal from 24-26, Aug, 2023 at the JW Marriott, Kolkata. Over 50 esteemed speakers and more than 600 delegates will gather to discuss key issues challenging steel and its raw material sectors and thrash out ways to navigate through the current scenario. It is an ideal platform for miners, pellet and sponge iron makers, steel manufacturers, traders, equipment suppliers, and technology providers to network under a single roof. Hope to see you there. Register fast.