India’s Iron Ore Imports hit 6.8 MnT in Apr-Nov’14 – SteelMint

India’s total Iron ore imports have moved up to 6.8 MnT in Apr-Nov’14, according to SteelMint statistics. Import prospect remains strong and we assume it may extend to 12 MnT or beyond by the end of this fiscal year.

Imports shall rise to 7.9 MnT by end of Dec’14 first week as 0.9 MnT Iron ore is at anchorage at various Indian ports. In addition, 0.2 MnT Iron ore is anticipated to arrive by then.

The prime importer, JSW Steel has procured 4.6 MnT (68%), out of 6.8 MnT. Tata has imported 1.3 MnT (19%). The top exporter, South Africa has supplied 2.8 MnT (41%) of the whole quantity. Besides, Krishnapatnam port has received 4.2 MnT (62%).

Traders offer Iranian Iron Ore to India; Buying Interest Low

Looking at active imports to India, traders are also offering Iron ore from Iran at USD 82/MT CFR Indian port (Paradip, Kandla, Haldia and Krishnapatnam).

But, inferior grade i.e. Fe 61/60 in contrast to South African (Fe 64/63) and Australian (Fe 63/62) Iron ore being offered at USD 92-95/MT CFR, has offset buying interest. To add, Bandar Abbas, one of the largest sea port in Iran, cannot handle capesize vessels and quantity is limited to 40,000 MT only.

0.54 MnT Iron Ore Import Deal finalized for Dec’14 arrival- Traders

A vessel carrying 55,000 MT South African Iron ore lump is to arrive in the 3rd week of Dec’14 at Vizag port. The material was booked at USD 92/MT CFR.

At Krishnapatnam port, three vessels carrying 172,000 MT, 162,000 MT and 150,000 MT Iron ore respectively, are to reach this month. The material is imported from South Africa and Australia and has been booked at around USD 95/MT CFR.

On What grounds India’s Iron Ore Import Prospect remains Strong?

1. Odisha government has been given an extension of 3 months by the Supreme Court to take a call on renewing licenses of 18 mining leases. Sources mentioned that as things are moving at a very slow pace, it is unexpected that any decision shall come up within 3 months, ending 15 Feb, 2015

2. Jharkhand state elections, results of which will be declared in January, 2015 have resulted in delayed decision on renewal of licenses for non-operational mines . In the recent development, the state High Court has allowed Steel Authority of India (SAIL) to resume mining. But, other miners including Tata, have to wait until Jan’15

3. Global Iron ore prices are unexpected to recover shortly because world’s leading miners continue to plan for production enhancement. Whereas, global financial crisis hits China’s residential property market and Chinese government has asked steel production cut to meet environmental norms

4. No respite from strong Iron ore prices in Indian market. Following short supply, Odisha based leading miner rolls over prices for Dec’14, which is at INR 7,700/MT for Fe 65 & 5-18 mm. Fe 63 fines is at INR 3,900/MT (inclusive of royalty & as per loaded into wagons)

The table below shows that though  India’s Iron ore production is expected at only 130-135 MnT in FY15, but lesser exports (including Pig iron), rising imports (including Scrap) and Goa e-auction sale, may help to offset Iron ore shortfall.

Source: SteelMint Research