Indian iron ore export shipments were recorded at 3.98 million tonnes (mn t) in Apr’21, registering a 32% decline as compared with 5.87 mn t in Mar’21, according to the vessel line-up data maintained with SteelMint.
The iron ore exports dropped on rising production curbs in China, which led tothe increased utilisation of high-grade ore such as pellets. Four mills in Tangshan, China were downgraded in terms of their emission categoryto grade D during the month, which means they might need to cut 50% emissions when the next round of emergency responses come in. Hence, the rising wave of production curbs has pulled down exports of low-grade ores from India.
As per SteelMint’s assessment, Fe 57% Indian iron ore fines fell from $92.5/t FoB east coast of India in Feb’21 to $89.5/t in Mar’21.Although spot iron ore prices for high-grades have hit record highs in China,low grade ores remained less preferred choices.
Indian iron ore exports to China down in Apr: China continued to remain the largest importer of Indian iron ore in Apr’21 with 3.93 mn t, despite the volumes being down 28%,as against 5.45 mn t in Mar’21. Malaysia was the second-largest importer, at 0.05 mn t.
Government-owned miner NMDC’s long-term iron ore export contracts with Japanese steel mills (JSMs) and South Korea’s POSCO, which were to be renewed on March 31, have been delayed. As a result, its export rakes’ movements from its Chhattisgarh mines, collated on a monthly basis, showed nil in Apr’21.
Rungta largest exporter in Apr: Rungta Mines was the largest iron ore exporter, at 1.08 mn t, in Apr’21, down 42% as against 1.87 mn t seen in Mar’21. Fomento was the second-largest exporter at 0.65 mn t, followed by Vedanta at 0.35 mn t and SM Niryat at 0.28 mn t.
Shipper-wise Indian iron ore exports in Apr’21 v/s Mar’21
Qty in t, Provisional data,
Source: SteelMint Research, Customs
Port-wise Indian iron ore exports: In Apr’21, ParadipPort accounted for 29% of monthly exports at 1.15 mn t (down 28% m-o-m) followed by MormugaoPort at 1.08 mn t and VizagPort at 0.41 mn t.
Outlook: Demand for low-grade iron ore continues to remain subdued in the current scenario. Discounts for low-grade ore have widened to 30-35% and are expected to widen further. Also, with a few Indian ports announcing force majeure, export volumes may remain slightly on the lower side, according to sources.
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