Indian Iron Ore Movement Down 72% in Apr’20

As per SteelMint’s analysis, iron ore movement across major producing states of the country recorded at 2.97 MnT (excluding exports) in Apr’20, down 72% as against 10.72 MnT in Mar’20. The figures are compiled on the basis of movements made via railways, trucks, and Karnataka and import data as per customs. The figures exclude the captive iron ore movement of SAIL & Tata Steel and movement for exports.

The dispatches fell amid logistic issues and mills curtailing output due to COVID 19. Also with mills holding enough iron ore inventories in hand, they remained away from making bulk bookings.

State-wise iron ore movement analysis:

Odisha iron ore dispatches down sharply in Apr’20
Odisha- India’s largest iron ore producing state recorded total merchant iron ore dispatches at 1.31 MnT in Apr’20, down 79% as against 6.34 MnT in Mar’20. The figures exclude movement for export and dispatches of miners- SAIL & Tata Steel.

Dispatches from Chhattisgarh down 48% in Apr’20
Iron ore dispatches from Chhattisgarh recorded at 1.02 MnT iron ore in Apr’20, against 1.94 MnT in Mar’20.

NMDC has supplied a total of 163 rakes (0.63 MnT) of iron ore in the month of Apr’20, down 57% against 378 rakes (1.46 MnT) a month before in Mar’20, according to railway movement data maintained with SteelMint. Amid nationwide lockdown, most of the steel mills in C.G remained closed last month. Few mills have started operation towards the mid of last month with the reduced production capacity.

Karnataka iron ore e-auction sales fell 73% in Apr’20
Karnataka has registered 73% decline in monthly e-auction sales volume in Apr’20. Total iron ore allotted quantity in Apr’20 was recorded at 0.54 MnT compared to 1.95 MnT in Mar’20. In the month of Apr’20, iron ore e-auction sales hit an all-time low below the last lowest figure recorded at 0.78 MnT in the month of Feb’15, as per data maintained with SteelMint.

NMDC sold 0.47 MnT iron ore via Karnataka e-auctions in Apr’20, increased sharply more than two-times against last month at 0.21 MnT. With operations remaining on hold in Donimalai, all the sales made were from its Kumaraswamy mines.

Indian iron ore imports fell in Apr’20
Indian iron ore imports for the month recorded nil as against 0.11 MnT in Mar’20.

Indian iron ore exports volumes halve in Apr’20
Indian iron ore exports in Apr’20 were recorded at 1.63 MnT, according to data maintained with SteelMint. The exports witnessed 50% drop on a monthly basis as against 3.25 MnT in Mar’20. China stood the only importer of Indian iron ore for the month at 1.63 MnT, down 46% as compared to 3.03 MnT in Mar’20.

Indian pellet export volumes for the first month of the fiscal FY’21 recorded at 1.17 MnT, up 35% as against 0.87 MnT in Mar’20, according to data maintained with SteelMint. The pellet exports picked up amid falling domestic demand. ArcelorMittal Nippon Steel marked the largest pellet exporter at 0.36 MnT for the month.

Indian Iron Ore Movement

Qty in MnT, Import and Export Fig includes pellet
Excluding SAIL & Tata Captive procurement
Source: SteelMint Research