Indian Iron Ore Imports fall 15% in Apr’15

Indian Iron ore imports noticed a fall of 15% in Apr’15 amid falling Iron ore prices in domestic market and on anticipation that new MMDR act will help re-opening of mines in India.

Indian Iron ore imports declined by 15% M-o-M to 332,615 MT in Apr’15 against 391,600 MT in Mar’15. Import declined with the increase in domestic availability of Iron ore and price cut by NMDC, India’s largest Iron ore miner. NMDC cut prices to the tune of 36% in last three months Price cuts were upto INR 500/MT in April, upto INR 500/MT in March and upto INR 450/MT in February.

India imported 15.5 MnT of Iron ore in FY15, most of the shipments done by JSW and Tata Steel. Total quantity imported by both the companies was 12.5 MnT. Tata Steel’s import shipments declined after opening of their Odisha Mines.

JSW Steel imported 9.1 MnT Iron ore in FY15. However, in FY16, the company has increased its domestic purchases from Karanataka’s e-auction and NMDC Chattisgarh mines, which is keeping it out of global market.

Essar Steel was the largest importer of Iron ore in Apr’15 with import of 132,000 MT of Iron ore from South Africa, followed by JSW Steel (88,000) and Kamachi group (54,800).

Global Iron Ore Prices rebound in last Week of Apr’15

Iron ore prices in global market rebounded sharply last week after Australian miners mentioned curtailing Iron ore production. Iron ore prices jumped about 20% from a low of USD 47/MT to USD 57/MT for Fe 62% Fines, CNF China basis.

Qty in MT
Source: SteelMint Stats, Customs
Provisional data

Iron ore import is expected to increase in the month of May’15, with the line up of 0.6 MnT of imported shipments from South Africa, Brazil, Venezuela. These Include three shipments of JSW, one each of Swiss Singapore, Essar and Shyam Steel.