Indian iron ore imports for the Jan’20 fell to 99,000 MT against 101,400 MT in Dec’19. However on yearly basis, imports have witnessed sharp decline of 59% as against 242,384 MT in Jan’18.
Why Indian iron ore imports dropped
1. High global prices: The spot iron ore fines (Fe 62%) increased on monthly basis to USD 92.63/MT, CFR China in Jan’20 against last month at USD 91.43/MT, CFR China.
2. Global material availability crises: Towards early Dec’19, Vale announced the temporary suspension at Laranjeiras dam and towards early Jan’20, the miner conveyed suspension of waste and tailings operations at its Esperança mine in Brumadinho, Minas Gerais. Hence, the aftermath of Vale dam disaster and Australian cyclone continue to exert pressure on global material supply.
3. Domestic ore & pellets remained preferred: Domestic iron ore remained preference over costlier imported iron ore.
Single import shipment from Gujarat based mill.
Monosteel stood the only importer of iron ore for the month at 99,000 MT. The imports stood from South Africa at Kandla port. It seems that amid scheduled pellet plant maintenance shutdown of Jindal SAW (key supplier to western India) in Jan’20 mill had booked imported lumps.
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