Iron ore movement across major producing states of the country recorded at 9.29 mn t (excluding exports) in July’20, up 6% on easing lockdown measures as against 8.75 mn t in June’20, as per SteelMint’s analysis. 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 SAIL & Tata Steel and movement for exports.
State-wise iron ore movement analysis:
Odisha iron ore dispatches majorly stable in July’20
Odisha- India’s largest iron ore producing state recorded total merchant iron ore dispatches at 4.55 mn t in July’20, mostly stable as against 4.20 mn t in June 20.
Dispatches from Chhattisgarh down slightly in Jul’20
Iron ore dispatches from Chhattisgarh recorded at 1.61 mn t iron ore in July’20, down marginally against 1.64 mn t in June’20. Dispatches fell due to suspension of dispatches from Line 7 & Line 8 at KK line in Jagdalpur, as per sources.
Karnataka iron ore e-auction sales increased 12% in Jul’20
Karnataka’s monthly iron ore e-auction sales volume increased by 12% m-o-m in Jul’20. Total allotted quantity in Jul’20 was at 3.13 mn t compared to 2.79 mn t in Jun’20. Iron ore e-auction sales increased to a 7-month high in Jul’20 as similar figures were seen in Dec’19 at 3.6 mn t.
Higher capacity utilization and an increase in product prices resulted in the active booking of ore by mills. Iron ore prices have increased across India on the back of tight supply of high-grade ore.
Indian iron ore imports continue to remain nil in Jul’20
Indian iron ore imports for the month continued to record nil. The imports were last witnessed in Mar’20 at 0.11 mn t. Monthly average global iron ore fines (Fe 62%) increased significantly by 4% to $107/t, CFR China in Jul’20 against that in last month at $103/t, CFR China.
Indian iron ore export volumes remained majorly stable
Indian iron ore exports were recorded at 3.8 mn t, majorly stable against 3.93 mn t in Jun’20. However, part of the reason for m-o-m decline in exports in Jul’20 was the capping of truck movement from mines to Paradip and Gopalpur ports to ease road traffic congestion and maintain social distancing at ports.
Rungta Mines was the largest iron ore exporter, with overseas sales up by 8% m-o-m in Jul’20 at 1 mn t. SM Niryat was the second-largest exporter at 0.74 mn t (up 28% m-o-m), followed by KAI International at 0.29 MnT, and Kashvi Power & Steel at 0.21 mn t.
Indian pellet export shipments fell by 7% m-o-m in Jul’20 at 1.67 mn t, amid easing Brazilian supplies post resumption of Vale’s Itabira Complex in Brazil and Teluk Rubiah terminal in Malaysia. Heightened tension between India and China kept Chinese buying interest low in early Jul’20. On the other hand, tight availability and high domestic prices in India resulted in a shift of interest of pellet makers towards the domestic market.
BRPL was the largest pellet exporter for the month at 0.40 mn t , up 44% m-o-m, followed by Rashmi Metaliks at about 0.31 mn t (up 11% m-o-m) and JSPL at 0.26 mn t.
Indian Iron Ore Movement
Qty in mn t, Import and Export Fig includes pellet
Excluding SAIL & Tata Captive procurement
Source: SteelMint Research
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