Indian iron ore export shipments hit over three-years high in May’20

Indian iron ore export shipments in May’20 were recorded at 3.91 MnT, according to data maintained with SteelMint. The exports increased sharply on a monthly basis as against 1.58 MnT in Apr’20. Also, shipments have touched over 3 years high in May’20 as prior to this, highest monthly shipments were witnessed at 4.08 MnT in Mar’17.

On yearly basis too, exports of iron ore registered almost two fold increase as compared to 2 MnT in May’19.

Reasons behind surge in export volumes:

1. Increased Chinese buying: Chinese mills showed rising demand of iron ore over increase in construction activities in the country. Besides the falling port inventories led to rising exports from India.

As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports dropped to 109.5 MnT towards the end of May’20 , as against 115.65 MnT assessed towards Apr’20 end.

2. Falling Brazilian exports: The concerns over coronavirus have been impacting the Brazilian supplies of iron ore cargoes amid rising COVID-19 cases at the iron ore mine in Itabira Brazil, owned by Vale.

As per sources reports, Minas Gerais public labor ministry filed a court injuction on 23rd May for temporary closure at Itabira site. However, the ministry’s request has been overtuned and conciliatory hearing between the parties has been set for June 18. The Itabira complex produced 35.9 MnT of iron ore in 2019. The discrepancies over continuous supply of material led to rising exports from Indian mills to fulfill Chinese demand.

3. High global iron ore prices: Monthly average global iron ore fines (Fe 62%) increased significantly by 11% to USD 94/MT, CFR China in May’20 against that in last month at USD 84/MT, CFR China. The rise in global iron ore prices fetched greater interest of Indian miners in exporting the raw material.

In addition to above reasons, Odisha based miners were also active in clearing their inventories which kept shipments on the higher side.

Exports to China increased over two folds in May’20

China continued to remain the largest importer of Indian iron ore for the month of May’20 at 3.70 MnT, up more than two folds as compared to 1.53 MnT in Apr’20. Japan stood second largest importer at 0.15 MnT.

Rungta stood largest exporter in May’20

Rungta Mines stood the largest iron ore exporter in May’20 at 0.86 MnT, exports rose significantly against 0.38 MnT a month ago in Apr’20. SM Niryat stood second-largest exporter for the month at 0.51 MnT (up 59% M-o-M), followed by Essel Mining at 0.34 MnT, and Fomento Resources at 0.28 MnT. JSPL was also noticed exporting iron ore last month.

Qty in MnT, Provisional data,
Source: SteelMint Research, Customs

Port wise Indian iron ore exports

In May’20, Paradip port stood the largest exporter of Indian iron ore at 1.30 MnT, up 41% as compared to 0.92 MnT in Apr’20. Mormugao port stood second largest at 0.99 MnT, followed by Gopalpur at 0.60 MnT and Haldia at 0.31 MnT.