Indian iron ore export doubled in Nov’18 and was recorded at 0.83 MnT as against 0.42 MnT in Oct’18. On yearly basis, the exports increased by 9% as against 0.76 MnT in Nov’17. The figures have hit 7-month high as in the month of Apr’18 at 1.18 MnT.
So far in FY’19 (Apr-Nov’18), the total iron ore exports recorded at 3.83 MnT, down significantly against 8.28 MnT for same duration previous year FY’18 (Apr-Nov’17).
Why Indian iron ore export volumes Increased?
1. NMDC increased Exports: NMDC recorded increase in rake movement for exports at 67 rakes (257,950 MT iron ore) in Nov’18, up sharply by 72% on monthly basis as against 39 rakes (150,150 MT) a month before. The miner resumed exports in Sep’18 after a gap of five months (since Mar’18). Amid delay in renewing of LTA for export and finalizing export duty, export volumes were lower earlier this year. From the last two-month iron ore export increased significantly by NMDC.
2. Preference for Iron ore fines over pellets: Amidst uncertainty in sintering cuts and the liberal environmental regulations in China compared to previous year has resulted in an increased preference for iron ore over pellets. Chinese mills have increased preference for low-grade ore to reduce the cost of production. Also, iron ore prices witnessed a downtrend in Nov’18. Chinese spot iron ore prices dropped down to 4.5 months low to USD 64.75/MT, CFR China.
3. Increase in Odisha iron ore production after monsoons: Post monsoons, Odisha (India’s largest iron ore producing state) miners recorded highest iron ore production at 9.21 MnT, up 43% as compared to Sep’18 production at 6.43 MnT. The favorable climate for production paved way for exports.
Rungta Mines turn out to be the largest iron ore exporter-:
Rungta Mines stood the largest exporter of iron ore in Nov’18 contributing 40% of total exports at 0.33 MnT, up 50% against 0.22 MnT in Oct’18.
MMTC (which exports on behalf of NMDC) recorded export at 0.23 MnT in Nov’18 against shipment in Oct’18 at 0.07 MnT.
VM Salgaonkar witnessed exports at 0.18 MnT (against nil in Oct’18). Exports from Goan miners was that of the stock left over with them as fresh mining activities are still on hold.
Shipper-wise Indian Iron Ore Exports: Nov’18 vs Oct’18
| Company | Nov’18 | Oct’18 | M-o-M (%) |
| Rungta Mines | 333,530 | 222,090 | 50% |
| MMTC | 233,000 | 72,000 | 224% |
| VM Salgaonkar | 176,300 | – | 100% |
| Fomento Resources | 90,000 | 77,000 | 17% |
| Sm Niryat | – | 53,100 | -100% |
| Grand Total | 832,830 | 424,190 | 96% |
Qty in MT, Provisional data,
Source: Steelmint Research, Customs
China Iron Imports double from India in Nov’18 – China continued to be the largest importer of Indian iron ore in Nov’18 and imported 0.60 MnT up two-times as against 0.30 MnT in Oct’18. Japan imported 0.07 MnT in the preceding month and imported more than three times in the month of Nov’18 at 0.23 MnT.
Iron Ore exports from Paradip port increased Sharply -: In Nov’18, Paradip port stood the largest exporter of Indian iron ore at 0.28 MnT, up two times as against 0.14 MnT in last month. Exports from Vizag port witnessed at 0.23 MnT followed by Mormugao at 0.18 MnT.
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