India: Iron ore export shipments largely stable in May, likely to fall in June

India’s iron ore export shipments were recorded at 1.64 million tonnes (mnt) in May 2022, largely stable m-o-m as against 1.66 mnt seen in April 2022, according to vessel line-up data maintained with SteelMint.

China largest importer: China continued to be the largest importer of iron ore from India at 1.50 mnt in May 2022, largely stable compared to 1.54 mnt in April.

Shipper-wise exporters: Vedanta was the largest iron ore exporter in May at 0.35 mnt followed by Rungta Mines and Fomento Resources at 0.28 mnt and 0.17 mnt, respectively. Exports of the material by Rungta Mines and Fomento Resources were down m-o-m compared to 0.41 mnt and 0.26 mnt, respectively.

Port-wise exports in May: Mormugao Port was the busiest port for iron ore exports in the month under review with 0.45 mnt as against 0.09 mnt in April. Paradip and Vizag ports stood in the second place with 0.29 mnt each followed by Gopalpur Port with 0.28 mnt.

Outlook

India’s iron ore export shipments are likely to remain on the lower side in June as the market has turned silent after the government imposed a steep 50% export duty on iron ore of all grades from 30% previously only on grades above Fe 58%.

However, with a drop in domestic iron ore prices in India, exports may regain momentum if price parity exists on global price recovery. SteelMint’s index for Fe 57% Odisha-origin fines fell by around INR 1,000/t m-o-m to INR 1,250/t ex-mines. Notably, Fe 62% iron ore fines index has risen from $130/t CFR China in mid-May to over $145/t CFR China in the latest assessment.