Indian iron ore import in Jan’19 witnessed at 0.19 MnT according to the customs data maintained by SteelMint. The imports have dropped 87% on monthly basis as against 1.46 MnT in Dec’18. Imports have hit 19-month low as imports in Jul’17 was recorded at 0.06 MnT.
Why have Indian iron ore imports dropped in Jan’19?
1. Decline in domestic iron ore prices
Cheaper domestic iron ore amid lucrative discounts from Odisha based major merchant miners remained preferred over imports. Also NMDC reduced iron ore prices from Chhattisgarh mines by INR 300-465/MT in Jan’19.
2. Force majeure at Krishnapatnam port
Krishnapatnam Force Majeure continues to be in force for vessels having Draft above 14.50 MnT. Port has brought in another dredger to speed up dredging. According to port, channel will be ready by end of 2nd Week of February 2019 for accepting Cape vessels, having arrival drafts up to 17.50 MnT.The imports at Krishnapatnam recorded nil for month against 0.38 MnT in Dec’18.
3.Hike in global iron ore prices
Monthly average global iron ore fines (Fe 62%) prices in Jan’19 recorded at USD 75/MT, CFR China, up 9% against USD 69/MT, CFR China in Dec’18. Amidst Vale dam disaster global iron ore fines prices have surged significantly in last week of Jan’19 from USD 75/MT to USD 85/MT.
JSW Steel turn out to be the only Importer in Jan’19
India’s major steel maker– JSW stood the only importer of iron ore for the month of Jan’19 at 0.19 MnT. The imports fell significantly by 79% as against 0.91 MnT in Dec’18. The total imports of 0.19 MnTstood for the month from Australia.
Australia stood the only exporting country of iron ore to India in Jan’19 at 0.19 MnT against 0.74 MnT in Dec’18. The imports have dropped 74% on monthly basis.
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