Iron ore shortage, soaring prices make steelmakers seek government help

Steelmakers are dependent on service providing miners for iron ore in the states of Jharkhand, Odisha and Chhattisgarh are in lack of raw materials because there has been a drop in manufacturing. Corporations are seeking government interception in the matter. 

“There is a gap of at least 20-35 lakh tonnes a month between consumption and supply. Government should step in soon,” said a senior government of a prime secondary steelmaker located in Odisha instructed, requesting anonymity. 

An analysis by SteelMint suggests that iron ore manufacturing in India has come down by 17.04% to 204 million tonnes in FY 21 as towards 246 million tonnes in FY20. 

Prices have increased due to scarcity of material. Price of 62% Fe iron ore fines, for instance, went up by 344% to round Rs 7,000 final month from Rs 1,575 in May 2020. 

Secondary steelmakers are approaching the government for help, to get out of present prices of iron ore. Current market has urged the government to public sale iron ore mines. There are several mines lying in Jharkhand and Odisha to be auctioned.  

As per knowledge from SteelMint, iron ore manufacturing in Odisha dropped by 28% in FY21 to 104 metric tonnes (mt) from round 145 mt within the earlier year whereas in Jharkhand, it got here all the way down to 21 mt from 28 mt. In Chhattisgarh production barley went up by 5% to 37 mt within the final fiscal. 

The state-owned steelmaker is at the moment promoting iron ore from its captive mines in Odisha and Chhattisgarh however there is no such thing as a gross sales from its Jharkhand mines. 

Around 20 mines can come up for public sale in the next few months.