Indian Iron Ore Movement Up 4% in FY19

As per SteelMint’s analysis, iron ore movement across major producing states of the country recorded at 129.5 MnT (excluding exports) in FY’19. The iron ore movement has recorded 4% rise against 124.1 MnT in FY’18. The figures are compiled on the basis of movements made via railways, trucks, and Karnataka and import data as per customs. The figures exclude the captive iron ore movement of OMC, SAIL & Tata Steel and movement for exports.

State-wise iron ore movement analysis:

Odisha Iron ore dispatches increased in FY19

Odisha- India’s largest iron ore producing state recorded rise in total iron ore dispatches at 65.27 MnT in FY’19, as against 64.63 MnT in FY18. The figures exclude movement for export and dispatches of miners- SAIL, OMC & Tata Steel.

Rungta Mines recorded highest dispatch in FY’19 at 19.22 MnT, down 8% as against 20.90 MnT in FY18, followed by Serajuddin at 7.75 MnT (up 3% Y-o-Y) and KJS at 5.61 MnT (down 21% Y-o-Y).

Odisha iron ore dispatches increased for the year amidst resumption of major mines in Feb’18 post the illegal mining ban. Also, Serajuddin resumed production from another pit which was closed owing to technical issues. Besides, RP Sao resumed operations after a period of about 2.5 years as it was last seen offering material in the merchant market towards the end of 2015.

Iron ore dispatches from C.G up 10% in FY’19

Iron ore dispatches from Chhattisgarh recorded at 20.8 MnT iron ore in FY’19, up 10% as against 18.9 MnT in FY’18.

NMDC supplied 427 (1.64 MnT) rakes of iron ore for the month of Mar’19, up 11% against 386 (1.49 MnT) rakes a month before in Feb’19.

Karnataka iron ore E-auction sales dropped 5% in FY19

Karnataka has registered a decrease of 5% in yearly sales e-auction volumes in FY’19. Total iron ore allotted quantity in FY’19 was recorded at 26.52 MnT in FY’19 compared to 28.05 MnT in FY’18.

NMDC sold 9.23 MnT iron ore via Karnataka e-auctions in FY19, less by 30% Y-o-Y. Out of this, 2.13 MnT was from Donimalai mines and rest 7.09 MnT from its Kumaraswamy mines. NMDC has temporarily suspended operations at Donimalai in Karnataka since Nov’18.

India’s major private steel mill and also largest buyer of Karnataka iron ore lowered iron ore purchases sharply in FY19 from e-auctions. In the fiscal year, FY’19 JSW purchased around 14.07 MnT iron ore from Karnataka e-auctions against 19.11 MnT in FY18. The steelmaker raised imports in FY19.

Indian iron ore imports up 42% in FY19

Indian iron ore imports in FY19 have been recorded at 12.36 MnT, up 44% compared to 8.60 MnT for FY18. This is 2nd record high on yearly basis as prior to this, Indian iron ore imports hit record high at 15.07 MnT in FY15. The imports increased amidst high discount on low grade Australian ore and suspension at Donimalai mines.

JSW stood the largest importer for FY’19 at 8.90 MnT. Other major importers were Gujarat based – Varsanna Ispat at 0.49 MnT followed by Essar Steel and Jindal SAW at 0.41 MnT each.

Indian pellet imports for FY’19 recorded at 0.62 MnT, up 32% as against 0.47 MnT in FY18.

Indian iron ore exports volume fell in FY19

Indian iron ore export volumes dropped significantly by 57% to 6.81 MnT as against 15.65 MnT in FY’18. Iron ore exports in the financial year FY’19 have hit three year low as this level was last seen in FY’16 at 6.04 MnT. The export volume dropped amidst Goa mining ban since Mar’18 and exports halt from NMDC mines for a period of five months in FY19.

Rungta Mines stood largest iron ore exporter in FY’19 at 1.85 MnT, up 5% Y-o-Y. MMTC (which exports on behalf of NMDC) exports dropped 57% to 1.10 MnT in FY’19 and exports from Vedanta fell 81% to 0.77 MnT.

Indian pellet exports remain stable in FY19

Indian pellet export volumes have remained majorly stable on yearly basis. Pellet export volumes were registered at 9.22 MnT in FY’19 against 8.96 MnT in FY’18. Indian pellet exports observed improved demand from Chinese steel mills during Sept-Nov 2018, due to strict governmental regulations in China and announcement of capacity cuts. Later amid shrinking steel margins and less stringent regulations, Chinese mills preferred low-grade iron ore and concentrate resulting in limited inquiries for pellets.

BRPL stood the largest pellet exporter in FY’19 with exports at 2.38 MnT, JSPL stood second largest in the list of Indian pellet exports at 1.82 MnT (down 5% Y-o-Y), followed by KIOCL at 1.52 MnT (down 4%).

Qty in MnT, Import and Export Fig includes pellet
Excluding OMC, SAIL & Tata Captive procurement
Source: SteelMint Research