India’s iron ore export shipments were recorded at 0.3 million tonnes (mnt) in November 2022, a sharp increase of 131% m-o-m as against 0.13 mnt seen in October 2022, according to the vessel line-up data maintained with SteelMint. It seems that due to cargo lying at ports, Indian iron ore export activities have risen further post-removal of export duties on low-grade ore fines.
SteelMint’s index for India’s low-grade iron ore fines (Fe 57%) exports has improved following the export duty withdrawal by the Indian government. The index stood at $60/t FOB east coast on 1 December, 2022, increasing by $7/t w-o-w.
- Exports to China increase sharply: China continued to be the largest importer of iron ore from India at 0.25 mnt in November 2022. Iron ore exports to China witnessed a sharp rise compared to 0.06 mnt in October 2022.
- Rungta Mines largest exporter: Rungta Mines was the largest iron ore exporter in November at 0.18 mnt followed by Praful Enterprise at 0.07 mnt.
- Port-wise exports in November: Paradip Port was the busiest for iron ore exports in the month under review with 0.12 mnt as against 0.06 mnt in October. Dhamra Port stood in second place with 0.07 mnt followed by Gopalpur Port with 0.06 mnt.
Export duty removal impact
On November 18, the government announced a significant reduction in export duties on steel and steelmaking raw materials. After the removal of the said duties, several trading houses communicated export offers for Fe52-57% fines that were due for loading end-November to early December.
Furthermore, an Australian iron ore miner released its monthly discount levels for December, based on the Platts 62% Fe index average for the month. Discount levels for Super Special Fines and Fortescue Blend Fines increased from 8% and 4.5% in November to 12.5% and 9% in December respectively. The discount for Western Pilbara Fines has also increased, from 2% to 3.75% for December.
The new discounts were well received by the majority of market participants, with the widening levels falling within expectations. However, some expected the discounts to be even deeper.
Outlook
The majority of market participants are optimistic about the long-term prospects of the iron ore market. Following the Indian government’s removal of export duties, traders are active, and we can expect export deals in the near future. Furthermore, domestic market prices rose as a result of increased demand.
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