India: Iron ore export shipments down 42% in Jun’21 on limited Chinese buying

India’s iron ore export shipments witnessed a sharp decline of 42% to 2.14 million tonnes (mn t) in Jun’21 as against 3.66 mn t in May’21, according to the vessel line-up data maintained with SteelMint. Limited Chinese buying of low-grade ore kept Indian exports low. Apart from uncertainty prevailing amidst quarantine measures in China for Indian cargoes and port delays, subdued interest for low-grade ore in China resulted in a fall in exports.

Recently, a major Australian iron ore miner increased the discount for sub-grade iron ore fines, or SSF (super special fines), on the back of falling overseas demand and steel margins in China. According to sources, the company has increased the discount for SSF fines for Jul’21 by 22.5% against 21% in Jun.

Prices remain under pressure

As per SteelMint’s assessment, Fe 57% Indian iron ore fines prices fell from $124/t CNF China in mid-May’21 to $112/t CFR levels in mid-Jun.

Indian iron ore exports to China down

China continued to remain the largest importer of Indian iron ore in Jun’21 with 2.14 mn t, down 40% as against 3.62 mn t seen in May’21.

Exports to Japan and Korea remained nil as NMDC’s long-term export contracts expired end of last fiscal. Government-owned miner NMDC’s long-term iron ore export contracts with Japanese steel mills (JSMs) and South Korea’s POSCO will not be renewed, SteelMint has learnt from reliable market sources. The reason is that the Government of India has withdrawn the sops it had provided NMDC in offering these contracts. These comprised a reduced 10% export duty as against the normal 30% paid by private iron ore exporters.

Rungta largest exporter

Rungta Mines was the largest iron ore exporter at 0.56 mn t, in Jun’21, down 14% as against 0.65 mn t seen in May’21. JSPL was the second-largest exporter at 0.24 mn t, followed by Essel Mining at 0.12 mn t.

Shipper-wise Indian iron ore exports in Jun’21 versus May’21

Qty in t, provisional data,
Source: SteelMint Research, Customs

Port-wise Indian iron ore exports: In Jun’21, Paradip Port accounted for 41% of monthly exports at 0.87 mn t (down 39% m-o-m) followed by Vizag Port at 0.46 mn t and Gopalpur Port at 0.44 mn t.