Indian iron ore export shipments in Q1 FY21 were recorded at 9.42 mn t, according to data maintained with SteelMint. The export shipments increased 16% on a quarterly basis as against 8.09 mn t in Q4 FY’20. On yearly basis, shipments have increased by around 81% compared to 5.21 MnT in Q1 FY20.
The exports in June’20 recorded at 3.93 mn t, up marginally on a monthly basis as against 3.91 mn t in May’20. The shipments continue to remain at 3 year high levels as prior to this, highest monthly shipments were witnessed at 4.08 mn t in Mar’17.
Reasons behind surge in export volumes:
1. Increased Chinese buying on falling port stocks:
Chinese mills showed rising demand of iron ore over increase in construction activities in the country. Besides, the country depicted continued rise in iron ore procurement post the end of lockdown. Also, the falling port inventories favored the Chinese imports of Indian iron ore. As per data compiled by SteelHome Consultancy, the average iron ore inventory fell from 127.3 mn t in Q4FY20 to 113 mn t in Q1FY21.
2. High global iron ore prices:
Monthly average global iron ore fines (Fe 62%) increased significantly for the quarter at $94/t in Q1FY21 as against being $89/t in Q4FY20. The rise in global iron ore prices fetched greater interest of Indian miners in exporting the raw material. The prices during the month of June’20 touched ten months high levels at $107/t which were last witnessed towards the beginning of Aug’19 at around $108/t.
3. Active bookings from Odisha based merchant miners :
With key iron ore mining leases expiring on 31 Mar’20, Odisha merchant miners remained active for export bookings in order to clear their stocks as they have been given time for six-months to clear them.
Exports to China increased 21% in Q1FY21
China continued to remain the largest importer of Indian iron ore for the first quarter of FY21 at 8.99 mn t, up 21% as against 7.43 mn t in last quarter. Japan stood second largest importer at 0.29 mn t, down 44% Q-o-Q followed by Malaysia at 0.07 mn t.
Rungta Mines remained the largest exporter; up 7% q-o-q
Rungta Mines stood the largest iron ore exporter in Q1 FY21 at 2.22 mn t, exports rose 7% against 2.07 mn t in Q4 FY’20. SM Niryat stood second-largest exporter for the quarter at 1.40 mn t (up 3% q-o-q), followed by Essel mining at 0.73 MnT, and Kashvi Power & Steel at 0.71 mn t.
Qty in mn t, Provisional data,
Source: SteelMint Research, Customs
Port wise Indian iron ore exports
In Q1FY21, Paradip port accounted for largest share of Indian iron ore exports and was recorded at 3.87 mn t, up 12% as compared to 3.45 mn t in Q4FY’20. Mormugao port stood second largest at 1.79 mn t, followed by Gopalur at 1.43 mn t and Haldia at 0.76 mn t.
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