Indian Iron Ore Exports Surge Over Three Folds in FY’20 on Increased Chinese Buying

Indian iron ore exports in FY’20 was recorded at 25.14 MnT, according to data maintained with SteelMint. The exports witnessed rise of more than three folds as against 6.81 MnT in FY’19.

Indian iron ore exports for the month of Mar’20 depicted 65% rise to 3.30 MnT against 1.20 MnT in Feb’20.

Why did Indian Iron ore exports pick up in FY’20?

Increased Chinese buying
Indian iron ore exports to China for the year FY20 recorded at 22.51 MnT, up sharply by more than four folds as compared to 5.27 MnT in FY’19.

Exports to non-Chinese market picked up 71% to 2.63 MnT as compared to 1.54 MnT in FY’19. Japan stood largest importer at 1.80 MnT (up 69% Y-o-Y), followed by South Korea at 0.59 MnT and Malaysia at 0.16 MnT.

Material availability Crises in global market:
Indian iron ore exports picked up amid reduced material a availability by major iron ore miners from Australia and Brazil. Brazilian major, Vale suffered a setback amid dam disaster towards Jan’19 which led to closure of numerous mines and dams. This was followed by Australian cyclone towards Mar’19. Both the events led to bulk drop in material availability in the market. Hence, Indian exports increased for the fiscal.

High prices
The spot iron ore prices for the year FY’20 increased to USD 95.5/MT, CFR China as compared to USD 71.3/MT, CFR China in FY’19. The year witnessed highest index price in July’19 at USD 120/MT,CFR China. The prices for the month were hovering five years high levels at USD 126/MT, CFR China towards early July.

Rungta iron ore exports up over three folds Y-o-Y

Low grade iron ore exports from Odisha increased significantly. Rungta mines stood the largest iron ore exporter in FY’20 at 5.97 MnT, contributing 24% of total exports for the month. The exports increased significantly as against 1.85 MnT in FY’19. SM Niryat stood second-largest exporter for the year at 4.68 MnT, followed by MMTC (which exports on behalf of NMDC) at 2.47 MnT, and Kashvi Power at 2.03 MnT.

Qty in MnT, Provisional data,
Source: SteelMint Research, Customs

Port wise Indian iron ore exports

In FY’20, Paradip port stood the largest exporter of Indian iron ore at 11.03 MnT, up as compared to 2.42 MnT in FY’19. Vizag port stood second largest at 4.70 MnT, followed by Haldia at 2.77 MnT and Gopalpur at 1.77 MnT.