Indian iron ore export shipments fell to 3.61 mn t in Oct’20, down 10% m-o-m as compared to 4 mn t in Sep’20, according to vessel line up data maintained with SteelMint.
Factors behind marginal fall in export volumes –
1. Chinese holidays kept buying interest low: Amid the week-long golden week holidays (1st Oct-7th Oct), Chinese buying for imported iron ore remained bearish. Buying sentiments remained bearish a week before the holidays, with limited bookings.
2. Increase in Chinese port stocks: Higher portside inventories of iron ore provided a buffer against further imports. As per data compiled by SteelHome consultancy, iron ore inventory at major Chinese ports increased to 128.95 mn t towards the end of Oct’20 as against 123.6 mn t towards the beginning of the month.
3. Decline in global iron ore prices: Monthly average global iron ore fines (Fe 62%) price decreased to $120/t CFR China in Oct’20 as against $124/t CFR China in Sep’20 due to easing material availability from major Brazilian and Australian miners. On the other hand, domestic iron ore prices in Odisha shot up on limited availability in merchant market as many auctioned mining leases are yet to resume output.
Indian iron ore export shipments to China down 14%: China continued to remain the largest importer of Indian iron ore for the month of Oct’20 at 3.28 mn t against 3.80 mn t in Sep’20. Exports to Japan stood at 0.14 mn t followed by South Korea at 0.08 mn t and Indonesia at 0.05 mn t.
Rungta mines stood the largest exporter: Rungta mines stood the largest iron ore exporter at 0.56 mn t (down 4% m-o-m). Thriveni was the second-largest exporter at 0.50 mn t (up 50% m-o-m), followed by SM Niryat at 0.47 mn t.
India iron ore export Oct’20 v/s Sep’20
Port wise Indian iron ore exports: In Oct’20, Paradip port accounted for 1.48 mn t exports (down by 21% m-o-m) followed by Vizag port ( at 0.95 mn t) and Gopalpur at 0.30 mn t.
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