Indian Iron Ore Imports Plunge 90% Y-o-Y on High Global Prices & Increased Domestic Supplies

Indian iron ore imports for the fiscal FY’20 was recorded at 1.21 MnT. The imports have dropped significantly by 90% as against 12.36 MnT in FY’19.

Why Indian iron ore imports fell in FY ’20?

High import prices
The spot iron ore fines price 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 the 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. Also SteelMint’s assessment of imported South African lump prices was recorded at USD 110.8/MT, CNF India in FY20 against USD 93.5/MT in the last fiscal.

Global material availability crises
Post the Vale dam disaster in Jan’19 followed by Brazilian cyclone, the iron ore market witnessed global shortage of material. As a consequence of the mishap, multiple mines were put to halt and discharge rate from the Australian and Brazilian miners depicted a fall for the year. Also, Brazil’s National Mining Agency (ANM) as on 2nd Apr said it would halt operations at 47 mining dams that failed to certify stability criteria, which includes about 25 dams of Vale SA.

Increased iron ore production in India
India’s iron ore production increased by 15% Y-o-Y to 235 MnT in CY19 on sharp increase in output from Odisha by 26%

JSW Steel iron ore imports down 96% in FY’20
India’s major steel maker– JSW stood the largest importer for the year FY20 at 0.37 MnT down as against 8.90 MnT in FY’19. KIOCL recorded the second largest importer at 0.28 MnT (up 19% Y-o-Y).

Shipper wise iron ore imports

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

Indian imports from South Africa fell 81% Y-o-Y
South Africa stood the largest iron ore exporter to India for the fiscal year FY ’20 at 0.51 MnT, down 81% as against 2.68 MnT in FY19. Iron ore Imports from Brazil fell in FY20 to 0.39 MnT (down 81%) followed by Australia at 0.19 MnT and Canada at 0.12 MnT.

Port-wise Indian iron ore imports in FY’20
Jaigarh port contributed the largest share of imports in FY20 at 0.37 MnT down 91% compared to 4.12 MnT in FY19. Mangalore stood second largest port for imports at 0.28 MnT followed by Kandla at 0.26 MnT.

Indian pellet imports down sharply in FY’20
Indian pellet imports for the fiscal year FY20 witnessed at 53,800 MT as against 628,141 MT in FY’19. Indian pellet imports from May’19- Mar’20 stood nil. The pellet imports have dropped amid global material shortage caused by world’s major miners followed by increased dependence on domestic pellets.