Posted on 02 Aug 2022
Output from India's largest iron ore producer, state-controlled NMDC, has slumped to a near two-year low as weak demand prompted steelmakers to slow production.
NMDC's iron ore production dropped by a third on the year and by 20pc on the month to 2.05mn t — the lowest since September 2020, while sales declined by 10pc on the year but rose by 55pc on the month to 2.95mn t.
The producer's sales dropped to a 22-month low in June, weighed down by a 15pc export duty imposed by the Indian government in late May. Indian steelmakers have brought forward maintenances and operated at a lower capacity to allay the impact from lower exports.
JSW Ispat Special Products extended a maintenance shutdown of a blast furnace at its plant at Raigarh last month, while JSW Steel operated at a lower capacity in April-June.
ArcelorMittal Nippon Steel India's production also fell in April-June due to maintenance.
NMDC aims to produce 46mn-47mn t in the current 2022-23 fiscal year ending 31 March, compared to 42mn t in the previous fiscal year.
The daily Argus ICX 62pc iron ore index was at $114/dry metric tonne on 1 August, down by 38pc from a year earlier.
Source:Argus Media
