Indian Iron Ore Import Rises in Aug’16

Indian iron ore imports have increased by 131% in the month of Aug’16 despite higher global iron ore prices.

In Aug’16, imports were registered at 756,150 MT. However,iron ore imports remained at 326,750 MT in ‘Jul’16 . Meanwhile, iron ore imports have grown significantly on Y-o-Y basis as only 69,600 MT iron ore was imported in the month of Aug’15.

In the first five months of FY17, Indian iron ore imports stood at 2.4 MnT, down by 14.2% Y-o-Y as it was 2.8 MnT during the same consecutive months last year.

All the imported cargos received during the month of Aug’16 were booked 2-3 months prior when global iron ore prices were lower.

Although global prices were higher throughout the month, there were mixed sentiments prevailed in the market. In Aug’16, the monthly average of global iron ore index was at USD 61/MT, CFR China, which was up by USD 10/MT since the month of Jul’16.

Few Western based iron ore importers prefer sourcing iron ore domestically (from NMDC Chhattisgarh auction) instead of relying on imports. On the other hand, few of the southern India-based importers namely JSW Steel and Kamachi/Pulkit Steels bought a joint cargo from South Africa.

Southern based-Jeevaka and Akshara Industries, which cumulatively import iron ore with Kamachi and Pulkit Steels, opted to source iron ore domestically and participated in the Karnataka iron ore e-auctions.

It is to be noted that JSW Steel has long term contract with Brazil and South Africa to import iron ore.

All the imported iron ore shipments bought were from South Africa & Brazil. Out of the total quantity imported in the month of Aug’16, 427,150 MT (56%), iron ore was from South Africa and 329,000 MT (44%) from Brazil.

Indian iron ore import in Aug’16 

Qty in MT
Provisional data
Source: SteelMint Stats, Customs