India: Falling Chinese Iron Ore Fines Prices hit Exports Hard

Iron ore exports from India in Sep’14 have fallen by 35% in contrast to Aug’14.

1. Exports have fallen from 390,235 MT in Aug’14 to 252,500 MT in Sep’14 as depreciating Indian currency, weakening Chinese fines prices and 30% export duty have made it unviable
2. MMTC (exports on behalf of NMDC), which has long-term agreements with Japanese & Korean steel mills, remain the largest exporter at 0.22 MnT
3. Majority of shipments took place from Vizag port (215,000 MT) followed by Paradip port (37,500 MT)

Iron Ore Exports from India in Sep’14

Qty in MT
Source: SteelMint Research

1. Spot Iron ore fines (Fe 62%) prices have slumped to 5 years low and is still below USD 80/MT CNF China (fall by USD 11/MT M-o-M) owing to mismatch in demand (low) and supply (high)
2. China’s HSBC PMI stood at 50.2 in Sep’14 signaling fractional improvement in its operating conditions

Indian Iron Ore Imports fall by 20% M-o-M in Sep’14

1. In Sep’14, 0.8 MnT Iron ore has been imported against 1.01 MnT in Aug’14
2. JSW Steel was the largest importer (0.6 MnT) followed by Tata International
3. Apart from Australia & Brazil, steel giants have also started importing material from Canada & Brazil
4. Since Mar’13, the largest shipment vessel carrying 186,948 MT lumps was imported by JSW Steel from Canada on 07 Sep, 2014
5. Amid falling spot Iron ore fines prices in China,  imports may rise in Oct’14

Indian Iron Ore Imports in Sep’14

Qty in MT
# Vessel at anchorage
Provisional data
Source: SteelMint Research; Cybex; Port site