Indian Iron Ore Movement Gains Strength in August

As per SteelMint’s analysis, iron ore movement across major producing states of the country was recorded at 9.4 MnT in Aug’16. On monthly basis, the figure has moved up by 15% M-o-M as in Jul’16 it was assessed at 8.2 MnT. The figure has been compiled on the basis of movements made via railways, trucks, Karnataka e-auction data and import data as per customs. The figure indicated does not include the captive iron ore movement of SAIL & Tata Steel movement from Goa and movement for exports.

State-wise iron ore movement analysis –

Odisha iron ore dispatches up by 19% M-o-M – Iron ore dispatches from Odisha based mines were recorded at 4.31 MnT in Jul’16. However, the figure stood at 5.14 MnT in Aug’16, thus recording an increase of 19% M-o-M.

Karnataka iron ore sales at 1.93 MnT – Iron ore sales via Karnataka e-auctions dropped by 6% M-o-M in Aug’16 from 2.05 MnT in Jul’16 to 1.93 MnT in Aug’16, out of which 1.72 MnT iron ore was procured by within state based units. Major buyers were – JSW Steel (1.26 MnT) and BMM Ispat (0.09 MnT).

Chhattisgarh iron ore movement remains stable at 1.3 MnT – Vizag Steel sourced 0.33 MnT iron ore from NMDC’s Bailadila mines. While Essar Steel procured about 0.53 MnT iron ore via slurry pipeline and rakes from NMDC (C.G.), JSW Steel (Dolvi and Vijayanagar) procured 0.19 MnT iron ore via rake movement. KIOCL also resumed iron ore purchases from NMDC (C.G.) and procured 0.04 MnT iron ore in Aug’16.

Indian iron ore import rises in Aug’16 – Despite higher global prices, iron ore import to India nearly doubled from 0.33 MnT in Jul’16 to 0.76 MnT in Aug’16. The reason behind this was the previously booked shipments, which arrived in Aug’16. JSW Steel was the largest importer at 0.42 MnT followed by Jindal SAW at 0.25 MnT. Apart from the two, Kamachi and Pulkit Steel jointly imported a vessel carrying 0.09 MnT in Aug’16. Pellet import to India continued to remain nil in Aug’16.

Iron ore export from India falls further – Indian iron ore export fell by 7% M-o-M from 0.55 MnT in Jul’16 to 0.52 MnT in Aug’16. Rungta Mines was the largest exporter at 0.23 MnT followed by NMDC at 0.22 MnT.

However, pellet export from India moved up sharply in Aug’16 amid rising pellet premium and improved demand of Indian pellets in China. Pellet export from India increased from 0.39 MnT in Jul’16 to 0.75 MnT in Aug’16. JSPL was the largest exporter at 0.40 MnT followed by BRPL (0.2 MnT), Essar Steel (0.1 MnT) and Rashmi Metaliks (0.05 MnT).