India’s iron ore export shipments were recorded at 1.72 million tonnes (mnt) in Apr 2022, a sharp increase of 35% m-o-m against 1.26 mnt in March 2022, according to vessel line-up data maintained with SteelMint.
Notably, Tangshan lifted steelmaking restrictions imposed to fight the COVID-19 surge earlier in April which improved raw material deliveries to the steel mills. Also, with margins of steel mills getting squeezed, enquiries for low-grade iron ore gained momentum in China.
SteelMint’s index for Fe 57% Indian origin fines export rose from $68/t CFR China seen in early March to over $80/t CFR in mid-April 2022. All these factors lifted Indian iron ore export prices, resulting in increased export bookings from India.
Exports to China up 20%
China continued to be the largest importer of iron ore from India at 1.48 mnt in April 2022. Iron ore exports to China witnessed a rise of 20% on the month compared with 1.23 mnt in March 2022. Indonesia occupied the second position among the top importers at 0.06 mnt.
Rungta Mines remains largest exporter
Rungta mines was the largest iron ore exporter in April 22 at 0.41 mnt followed by Praful Enterprises and Fomento Resources at 0.28 mnt and 0.26 mnt respectively.
Port-wise exports in April
Paradip was observed as the busiest port of iron ore exports in the month of April 2022, which recorded iron ore exports at 0.58 mnt against 0.21 mnt in March 2022. Gopalpur port was the second-largest iron ore exporter in April 2022 at 0.41 mnt followed by Vizag port at 0.18 mnt.
Outlook
China is likely to increase imports of low-grade iron ore in the near term due to lower margins for high-grade ore amid the Labour Day holidays in May, SteelMint expects.
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