Indian iron ore export shipments increased to 40.72 mn t in CY’20, up more than two folds on yearly basis as compared to 19.14 mn t in CY’19, according to vessel line up data maintained with SteelMint.
Reasons behind the two-fold increase?
- High global price:The yearly average global iron ore fines (Fe 62%) prices increased to $108/t CFR China in CY’20 as against $93.5/t CFR China in CY’19. Also, the prices were hovering as high as $167/t, CNF China towards Dec’20 end. Indian low grade iron ore export prices (Fe 57%) increased to $68/t, CNF China in CY’20 as compared to $62/t, CNF China in CY’19.
- Falling iron ore inventory at Chinese ports:The iron ore inventory witnessed a fall from 130 mn t towards beginning of CY’20 to as low as 108 mnt by June’20, as per SteelHome data.
- Odisha miners liquidating stocks: Odisha based miners remained active in liquidating their low-grade ore stocks. Iron ore exports from Odisha increased as 19 iron ore mining leases which were put up for auction were busy liquidating their inventories. The auctioned mining leases had roughly 40 mnt of inventories.
- Material availability crisis: The concerns over corona virus have been impacting the Brazilian supplies of iron ore cargoes amid rising COVID-19 cases at the iron ore mine in Itabira Brazil, owned by Vale. Also, Vale reduced its CY’20 production guidance to 300-305 mn t as against 310-330 mnt set previously. Port maintenance activities at Australian port towards the year end too affected iron ore supplies.
Indian iron ore export shipments to China up in CY’20: China continued to remain the largest importer of Indian iron ore for the year CY’20 at 38.13 mn t against 16.56 mn t in CY’19. Exports to Japan stood at 1.84 mn t followed by South Korea at 0.44 mn t.
Rungta mines remained the largest exporter: Rungta mines was the largest iron ore exporter at 8.86 mn t against 4.17 mn t in CY’19.SM Niryat was the second-largest exporter at 5.65 mn t (up 45% y-o-y), followed by Kashvi power and Steel at 2.53 mn t
Shipper-wise India iron ore export CY’20 v/s CY’19*
*correction in figures of Sparsh Baldev & Laxmi Exports
Qty in mn t, Provisional data,
Source: SteelMint Research, Customs
Port wise Indian iron ore exports: In CY’20, Paradip port accounted for 15.64 mn t exports (up 83% y-o-y) followed by Vizag at 6.89 mn t and Gopalpur port at 5.28 mn t.
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