India registered a 21% increase in iron ore and pellet imports at 1.39 million tonnes (mn t) in calendar year 2022 (CY’22) compared to 1.15 mn t in CY’21, data maintained with SteelMint shows. Lower global iron ore prices resulted in slight increase in India’s iron ore imports, especially by port-based plants. India’s pellet imports increased by 5.2% to 52,600 t in CY’22 from 50,000 t in CY’21. A 52,600-tonne shipment unloaded at Kandla Port from Bahrain.
Brazil leading exporter
Brazil was the largest exporter of iron ore to India at 495,617 t in CY’22, which was nil in CY’21.
Australia occupied the second position among the top exporters’ list in CY’22 with 355,612 t followed by South Africa with 269,002 mnt. Imports of iron ore from South Africa declined sharply by 67% y-o-y. South African iron ore imports to India decreased due to the Transnet strike. Shipments from Ukraine were nil due to the Russia-Ukraine war.
Falling global iron ore prices drive up imports
A sharp correction in global iron ore prices resulted in an increase in import bookings. The benchmark Fe 62% Australian fines prices dropped from $150/tonne (t) CFR China around April-May 2022 to $80/t CFR China in end-October 2022. However, domestic iron ore prices were high, so coast-based steel mills took advantage of lower global iron ore prices.
Outlook
Global iron ore prices have seen an uptrend on strong seaborne buying and restocking due to the Chinese Lunar holidays. The spot price of benchmark iron ore Fe 62% fines moved up by around $1.65/t w-o-w to $117.2/t CFR China on 5 January, 2023.
Currently, domestic iron ore prices have also risen so import bookings for the raw material have slowed down.
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