Iron ore imports to India are expected to touch 10.1 MnT by the end of Q3 FY15.
According to SteelMint, 8.6 MnT Iron ore has already been imported from Apr-Dec’14 (till 20 Dec’14) and another 1.5 MnT is anticipated to arrive at various ports by 31 Dec, 2014.
Currently, import offers of South African Iron ore lump (Fe 64%) to India are around USD 95/MT, CNF Krishnapatnam Port and fines of similar grade and origin are at USD 74-76/MT CNF India. For immediate delivery, prices are at nearly USD 102-104/MT, CNF and delivery by a fortnight would cost USD 98-100/MT, CNF.
1.5 MnT Iron Ore expected to arrive by 31 Dec’14
|
Unloading Port |
Vessel Name | Qty | Importer | Status |
Expected Date |
Last Port |
| Krishnapatnam | Navios Lumen | 173,500 | JSW Steel | Expected | 31 Dec’14 | Brazil |
| Haldia | Melos | 18,000 | Tata | Expected | 28 Dec’14 | South Africa |
| Krishnapatnam | Frontier Kotobuki | 169,600 | Kamachi Group | Expected | 23 Dec’14 | South Africa |
| Mumbai | Glovious Maria | 55,000 | Amba River Coke | Expected | 22 Dec’14 | Oman |
| Jaigarh | Athanios | 76,700 | JSW Steel | Expected | 22 Dec’14 | Venezuela |
| Paradip | Melos | 28,000 | Tata | Expected | 20 Dec’14 | South Africa |
| Mumbai | Js Garonne | 63,000 | Amba River Coke | Anchorage | 18 Dec’14 | Oman |
| Paradip | Anne | 20,000 | Tata | Anchorage | 16 Dec’14 | Australia |
| Krishnapatnam | Brave Haralambos | 170,000 | JSW Steel | Anchorage | 15 Dec’14 | Brazil |
| Kandla | Densa Shark | 175,900 | N/A | Anchorage | 15 Dec’14 | N/A |
| Krishnapatnam | Cape Venture | 175,000 | JSW Steel | Anchorage | 14 Dec’14 | South Africa |
| Haldia | Sbi Cakewalk | 27,500 | Bengal Energy | Anchorage | 11 Dec’14 | South Africa |
| Krishnapatnam | K Endeavor | 176,000 | JSW Steel | Anchorage | 11 Dec’14 | Brazil |
| Krishnapatnam | Sampaguita Dream | 165,000 | SunFlag Iron & Steel, Lloyds Steel, Pushpit Steels, OPG | Anchorage | 23 Nov’14 | South Africa |
Qty in MT
N/A-Not Available
Source: SteelMint Research, Customs
Iron ore imports are expected to continue until & unless its supply in the state of Odisha improves. Ongoing downfall in Chinese Iron ore prices will keep imports cost effective in comparison to domestic material.
Despite fall in inventory level at Chinese ports, spot Iron ore fines (Fe 62%) prices are at USD 65-66/MT, CNF China presently. Huge supplies from world’s leading miners (whose production is low cost) in comparison to weak steel demand in China backed by fall in residential property market has pressed prices constantly.
Tata Steel, the 2nd largest Iron ore importer of the country, has been permitted to re-start Iron ore production from its Odisha & Jharkhand mines. Post suspension of mining operations, the steelmaker had imported 1.9 MnT Iron ore from May-Dec’14 (till 20 Dec’14) and 66,000 MT is expected to arrive by 28 Dec, 2014. In Apr-Nov’14, the company loaded 114 Iron ore rakes (438,900 MT) from NMDC.
Some of the positive signs on improved Iron ore supply in Odisha Q4 FY15 onward are as follows:
1. Serajuddin Mines, one of the largest merchant miners in Odisha, has been granted an extended EC limit of 15.15 MnT by Ministry of Environment, which was 4.5 MnT earlier. The miner is anticipated to resume mining operations soon.
2. Odisha government has decided to enhance production from running mines in the state. Accordingly, leading miners including Rungta (3 mines), Serajuddin and S N Mohanty were proposed to increase production limit by additional 16 MnT per year.
3. Besides this, Odisha government is to supply Iron ore to state based Steel units, which have signed MoUs with the state government under the ‘50:50’ rule. OMC and other private miners would supply 50% of their total output.
4. Government has released first list of Iron ore allocation to state based units under its gazetted notification dated 26 Jun, 2014. About 6 MnT of Iron ore has been allotted from all operating mines for Q4 FY15. 2.5 MnT Iron ore would be supplied by OMC in Q4 FY15 to companies that have signed MoU with the state. Miners such as Serajuddin, Praboh Mohanty Mines, MGM Mines, Rungta & Sons, Essel Mining and Penguin Trading & Agencies shall supply 4.2 MnT Iron ore to companies namely JSPL, Essar Steel, Bhushan Steel, BRPL & others.
5. OMC is expected to produce 5 MnT Iron ore by 31 Mar, 2015 and for long-term agreements, 2.5 MnT shall be available out of the total.
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