Indian Iron Ore Import Falls by 12% in Oct’16

Indian iron ore import has seen a fall of 12% in the month of Oct’16 as Indian iron ore importers kept themselves away from importing due to higher global iron ore prices in the month of Oct’16.

In Oct’16, imports were registered at 483,360 MT against 550,530 MT in Sept’16. However, on Y-o-Y basis, there is 100% growth of iron ore imports as imports in the month of Oct’15 remained nil.

In the first seven months of FY17, Indian iron ore imports stood at 3.4 MnT, up by 9.6% Y-o-Y as it was 3.1 MnT during the same period last year.

It is observed that monthly average iron ore fines (Fe 62%) index, which stood at USD 57/MT, CFR China in Sept’16, moved up slightly and was recorded at USD 58.2/MT, CFR China in Oct’16.

In Oct’16, JSW Steel, KIOCL and few Gujarat based importers bought single imported cargo. JSW Steel imported the highest quantity of iron ore. It is to be noted that JSW Steel has long term contract with Brazilian and South African miners to procure iron ore.

Single iron ore import shipment observed in Southern India – In Southern India, only KIOCL imported 61,200 MT iron ore concentrate from Iran in the month of Oct’16. The iron ore procured belong to the buyback tender which expired in Sept’16 in which the company will provide iron ore fines to KIOCL and KIOCL will make pellet and supply back them pellets.

Gujarat based importers bought single shipment: A vessel of 91,000 MT South African lump has been jointly imported by SAL Steel, Varrsana Ispat and Electrotherm India at Kandla Port. As per market sources report to SteelMint, the vessel was booked at USD 75-76/MT, CFR India.

All the imported iron ore shipments bought were from South Africa, Brazil & Iran. In Oct’16, out of the total quantity imported, 331,160 MT (68.5%) iron ore was from Brazil, 91,000 MT (19%) from South Africa and 12% from Iran.

Indian iron ore import in Oct’16

Qty in MT
Provisional data
Source: SteelMint Stats, Customs