Indian Iron Ore Export Volumes Surge in March on Increased Bookings from Odisha

As per the vessel line up data maintained by SteelMint, Indian iron ore export volumes have seen significant increase in Mar’19. Till  16 Mar Indian iron ore export volumes have been recorded at 0.48 MnT against 0.33 MnT in Feb’19. Taking vessels at anchorage & expected positions into account, export volumes are expected to reach 0.73 MnT in Mar’19. Out of 0.73 MnT iron ore exported so far in March, 0.37 MnT belongs to Odisha miners and traders.

SteelMint in conversation with market participants learned that few Odisha based exporters have turned active for iron ore exports in the month of March Chinese mills prefer low-grade iron ore and concentrate rather than going for high-grade ore & pellets amid shrinking steel margins.

As per market participant, currently, the trade price of low-grade iron ore fines (< than Fe 58%) export from Odisha to China is around INR 2,700-2,900/MT FOB East India. Prices for exports has seen significant hike of INR 600-700/MT against the last two months, owing to lowered discounts on low-grade ore and high global prices. This has turned Odisha miners & traders active, although rake availability remains a concern

Fe 62% fines index hit USD 94/MT, CFR China mark post Vale incident in Jan’19 anticipating shortage of 70 MnT in seaborne iron ore supply. Global iron ore prices USD 86/MT, CFR towards the close of last week.

Following this, discounts on low-grade iron ore fines have declined to 16% in March which was around 33% a month back.

Indian iron ore export vessel line up – March 2019

Quantity in MT
Source: SteelMint Stats