Indian Iron Ore Movement Drops 7% M-o-M in June

As per SteelMint’s analysis, iron ore movement across major producing states of the country recorded decline of 7% M-o-M in June’18 to 11.11 MnT as against 11.94 MnT in May’18. The figures are compiled on the basis of movements made via railways, trucks, Karnataka and import data as per customs. The figures exclude the captive iron ore movement of SAIL & Tata Steel and movement for exports.

State-wise iron ore movement analysis:

Odisha Iron ore dispatches fell marginally

Iron ore dispatches from Odisha in June’18 witnessed at 5.98MnT, in line with May’18 dispatches at 6.05 MnT.

Rungta Mines recorded highest dispatch in June’18 at 1.99 MnT, up 4% as against 1.91 MnT in May’18, followed by OMC at 0.81 MnT (down 11% M-o-M) and KJS Ahluwalia at 0.45 MnT(down 27% M-o-M).

NMDC C.G. Iron ore dispatches stable on monthly basis

India’s largest iron ore miner, NMDC has supplied 316 rakes of iron ore from Bailadila mines, Chhattisgarh in June’18, almost stable on monthly basis. Out of 316 rakes supplied, 50 rakes were moved to state based units, up 16% on monthly basis. A total of 266 rakes were supplied to outside CG based units (down 4% M-o-M).

Iron ore exported by NMDC under MMTC under Long-Term Agreement was subject to an export duty of 10% which was expired on 31 Mar’18. Hence, the movement for exports recorded nil for third consecutive month since Apr’18.

However, recently Indian government has announced the export duty unchanged at 10% for iron ore exported from National Mineral Development Corporation (NMDC). Hence, exports from NMDC are expected to resume shortly.

Karnataka iron ore e-auction sales up 11% M-o-M

Karnataka has registered a hike in iron ore sales via e-auctions in June’18 by 11% M-o-M. The sales stood at 1.97 MnT in June’18 as against 1.77 MnT in May’18.
NMDC’s iron ore sales increased by almost four-folds M-o-M to 0.74 MnT in Jun’18 compared to 0.20 MnT in May’18 owing to reduction in prices by around 300/MT in both fines as well as lumps on 22nd June’18.

In June’18, NMDC Kumarswamy recorded an increase of more than two-fold in its sales volume to 0.32 MnT while sales from NMDC Donimalai mines increased sharply by six-fold to 0.42 MnT in Jun’18. JSW Steel continued to be the largest buyer in Karnataka iron ore e-auction at 1.06 MnT in Jun’18, followed by BMM Ispat at 0.18 MnT.

Indian iron ore imports drops 42% M-o-M in June’18

Indian iron ore imports in June’18 witnessed at 0.92 MnT, lowest since Jan’18. It depicted a fall of 42% M-o-M as against 1.59 MnT in May’18.

Indian iron ore imports in first quarter FY’19 recorded at 3.48 MnT, a decline of 22% Q-o-Q as against 4.49 MnT in Q4 FY’18.

The pellet imports for the month witnessed nil as against 0.09 MnT a month before.

JSW steel has imported 0.47 MnT iron ore in June’18 and turned out to be largest importer. However, the imports stood down 65% on monthly basis as against 1.35 MnT in May’18. Out of the total imports in June’18, JSW imported 0.36 MnT from Australia and remaining 0.11 MnT from South Africa. JSW has started aggressive buying of iron ore from NMDC post price reduction by the NMDC.

Indian iron ore export drop to 1-year low in Jun’18

Indian iron ore exports in June’18 witnessed at 0.34 MnT, down 58% M-o-M as against 0.79 MnT in May’18. The exports have dropped down to lowest since June’17 at 0.25 MnT.
Indian iron ore exports have recorded sharp decline of 61% Q-o-Q in Q1 FY19 at 2.31 MnT, as against Q4 FY’18 at 5.87 MnT.

The exports witnessed a sharp decline of iron ore exports for the month, as Goa contributing major proportion of Indian exports, observed no exports in June’18 owing to owing to cancellation of mining operations at 88 mining lease post 15th Mar’18 by the Supreme court. Besides, Exports from NMDC continued to remain nil for the 3rd consecutive month in June’18.

Indian Pellet Export doubled in June’18

Indian pellet exports for the month of June’18, witnessed at 0.83 MnT, up by two folds as against May’18 exports at 0.40 MnT.

Chinese mills are actively looking for low alumina high grade pellets cargoes due to strict govt. norms imposed on steel mills in Northern China, resulted in enhanced pellet export from India.

Indian pellet export price assessment increased from USD 97/MT, FoB India in May’18 to USD 109/MT, FoB India in last assessement recently.

KIOCL stood the largest exporter for the month of June’18 at 0.24 MnT (up four folds M-o-M), accounting for 29% of total export share, followed by BRPL at 0.23 MnT (up by more than twice on monthly basis) and JSPL at 0.15 MnT.

Indian Iron Ore Movement June’18 v/s May’18

Qty in MnT
Excluding SAIL & Tata Captive procurement
Source: SteelMint Research