Indian Iron Ore Movement Fell 9% in July’19

As per SteelMint’s analysis, iron ore movement across major producing states of the country recorded at 11.26 MnT (excluding exports) in July’19 down M-o-M as against 12.43 in June’19. 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.

State-wise iron ore movement analysis:

Odisha iron ore dispatches down 6% in July’19

Odisha- India’s largest iron ore producing state recorded total iron ore dispatches at 7.27 MnT in July’19, as against 7.74 MnT in June’19. The figures exclude movement for export and dispatches of miners- SAIL & Tata Steel.

Rungta Mines, dispatched iron ore at 1.75 MnT in July’19, 4% rise as against 1.68 MnT in June’19. Serajuddin mine recorded iron ore dispatches at 0.96 MnT in July’19, down 15% against 1.13 MnT in June’19.

Iron ore dispatches from C.G fell 34% in July’19

Iron ore dispatches from Chhattisgarh recorded at 1.19 MnT iron ore in July’19, down 34% as against 1.80 MnT in June’19.

NMDC (Chhattisgarh) supplied total of 222 rakes (0.85 MnT) of iron ore in the month of Jul’19, down 28% against 310 rakes (1.19 MnT) a month before in Jun’19. Owing to seasonal effect (monsoon) dispatches from the mines were down and also it resulted in increased loading time. Another reason was plunge in domestic sponge and billet prices amid weak market fundamentals.

Karnataka iron ore E-auction sales dropped marginally for the month

Karnataka has registered a fall of 3% in monthly e-auction sales volume in Jul’19. Total iron ore allotted quantity was recorded at 2.41 MnT in Jul’19 compared to 2.47 MnT in Jun’19.
NMDC sold 0.71 MnT iron ore via Karnataka e-auctions in Jul’19, lower by 17% M-o-M against 0.86 MnT last month. Vyasankere Iron Ore Mines stood second-largest iron ore supplier at 0.29 MnT followed by Ramanadurga Iron Ore Mine at 0.22 MnT.

As per the recent order issued by govt of Karnataka, the state govt has decided to cancel the lease renewal order of NMDC’s Donimalai mines in Karnataka. Earlier, towards 10th July Karnataka High Court had announced final judgment in the pending Donimalai case. The judgment was in favor of NMDC thus need not pay premium for mining lease renewal at its Donimalai mines.

Indian iron ore imports fell five years low in July’19

Indian iron ore imports in July’19 have been recorded at 51,470 MT, depicting 28% declines for the month compared to 71,865 MT in June’19. The imports have dropped amid high global prices. Imports for the month recorded 5 years low as the levels were last witnessed in June’14 at 45,487 MT.

The spot iron ore fines (Fe 62%) index price witnessed hike to USD 120/MT,CFR China in July’19 as against USD 108/MT, CFR China in June’19. The prices for the month were hovering at five years high levels at USD 126/MT, CFR China towards early July.

Indian iron ore exports volumes up 19% for the month

Indian iron ore export volumes for July’19 stood at 2.13 MnT, up 19% as against 1.79 MnT in June’19. Indian iron ore exports picked up for the month amid high global prices in Jun-Jul’19. On yearly basis, exports increased significantly compared to July’18 at 0.17 MnT.

Rungta stood largest iron ore exporter in July’19 at 0.33 MnT, up 12% as against 0.29 MnT in June’19. SM Niryat stood second largest exporter and its exports dropped 44% to 0.31 MnT. MMTC exports picked up sharply to 0.30 MnT.

Indian pellet exports up 38% in July’19

Indian pellet export volumes in Jul’19 have been recorded at 1.2 MnT, up 38% on monthly basis as against 0.87 MnT a month ago. Amid rising demand from Chinese mills and falling inventory at ports in June, steel mills had raised bids for Indian pellet. Chinese mills were looking to reduce raw material cost as the cost of fines was high.

BRPL stood the largest pellet exporter in Jul’19 with exports at 0.29 MnT, up more than two- folds as against 0.12 MnT in Jun’19.

India State Wise Iron ore Movement in July’19 & June’19

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