Ample and cheaper availability of iron ore in domestic market, along with currency devaluation, has reduced iron ore imports to India by 89% in Aug’15.
Indian iron ore imports which stood at 652,500 MT in July’15 has noticed a sharp fall of 89% M-o-M in Aug’15 and remained at 69,600 MT. The entire amount of the imported iron ore was procured from South Africa comprising of lump. Only 3 shipments were noticed last month.
Indian Iron Ore Imports in Aug’15
Date |
Quantity |
Shipper |
Country |
Unloading Port |
|
| 01 Aug’15 | 15,000 | N/A | South Africa | Tuticorin | JS Yukon |
| 05 Aug’15 | 31,100 | Kamachi Group | Krishnapatnam | Oriental Phoenix | |
| 11 Aug’15 | 23,500 | Shyam Steel | Haldia | Oriental Phoenix | |
| Total | 69,600 |
Qty in MT
N/A: Not Available
Provisional data
Source: SteelMint Research, Customs
Ample availability, declining iron ore prices in domestic market and devalued INR will make domestic ore attractive than the imported. Iron ore import to India is expected to remain low in forthcoming months. Offers for imported lump from South Africa are at around USD 67-68/MT CIF India (INR 4,460/MT). Whereas in domestic market, current prices for lump in Karnataka is INR 2,500/MT (basic) and in Odisha it is around INR 3,200/MT ex-mines for Fe 62-63%.
Significant increase has been noticed in Tata Steel’s coastal movement last month. About 0.30 MnT iron ore was shipped to Haldia Port from Paradip, Krishnapatnam and Gangavaram Ports in Aug’15. In July’15, the steelmaker had shipped about 0.16 MnT iron ore to Haldia Port, which has increased by 88% M-o-M.
Earlier in Aug’15, DoM Jharkhand stopped iron ore dispatches from Tata Steel’s Noamundi iron ore mines (having production capacity of 10 MnT pa), which is an important source of its iron ore. Owing to this, the company has increased its iron ore & pellet purchases from domestic market. If Tata Steel still falls short of iron ore requirement, it might turn to imports.
till Aug’15
Provisional data
Source: SteelMint, Customs
Single pellet import shipment observed last month
Jindal Steel & Power (JSPL) imported 50,600 MT pellets from UAE at Dhamra Port via vessel named Star Cosmo. This was the only pellet import shipment observed in Aug’15. Pellet import to India was nil in July’15.
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