Iron ore movement across major producing states of the country recorded at 7.58 mn t (excluding exports) in Aug’20, down 18% as against 9.29 mn t in July’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 fell in Aug’20
Odisha- India’s largest iron ore producing state recorded total merchant iron ore dispatches at 3.40 mn t in Aug’20, down 25% as against 4.55 mn t in July’20. The figures exclude movement for export and dispatches of miners- SAIL, JSW & Tata Steel. The drop is due to supply imbalance in Odisha caused by 14 of the 19 newly auctioned mines failing to start operations.
Dispatches from Chhattisgarh dropped 45% in Aug’20
Iron ore dispatches from Chhattisgarh recorded at 0.89 mn t iron ore in Aug’20, down 45% against 1.61 mn t in July’20. This was majorly due to record rains hampering production.
Karnataka iron ore e-auction sales picked up in Aug’20
Karnataka’s monthly iron ore e-auction sales have risen to an eight-month high in the month of Aug’20. The total allotted quantity in Aug’20 was recorded at 3.16 mn t when compared to 3.13 mn t in Jun’20.
Indian iron ore imports continue to remain nil in Aug’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 to $122/t, CFR China in Aug’20 against that in last month at $107/t, CFR China.
Indian iron ore export volumes rose in Aug’20
Indian iron ore export shipments increased to 3.86 mn t in Aug’20, according to vessel line up data maintained with SteelMint. The exports were up compared to 3.80 mn t in July’20. The exports picked on rising Chinese demand and increase in export prices following global hike. Chinese market continued investment in infrastructure pushed the Chinese imports of iron ore from India for the month of Aug’20.
Rungta Mines was the largest iron ore exporter, with overseas sales in Aug’20 at 0.96 mn t. SM Niryat was the second-largest exporter at 0.52 mn t, followed by KAI International at 0.31 MnT and Bagadiya Brothers at 0.21 mn t.
Indian pellet exports fell 30% in Aug’20
Indian pellet export shipments fell by around 30% m-o-m in Aug’20 at 1.18 mn t as against 1.67 mn t in July’20. Indian pellet makers are mostly focusing on exploring the domestic market as its looks more lucrative than the export realization amid high domestic prices and tight availability.
Rashmi Metaliks was the largest pellet exporter for the month at 0.19 mn t , down 42% m-o-m, followed by BRPL at about 0.17 mn t (down 57% m-o-m) and KIOCL at 0.16 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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