As per SteelMint`s analysis, iron ore movement across major producing states of the country recorded at 11.41 MnT in July`18, stable on monthly basis as against 11.23 MnT in June`18. The figures are compiled on the basis of movements made via railways, trucks, 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 on monthly basis
Iron ore dispatches from Odisha in July`18 witnessed at 5.88 MnT, down against June`18 dispatches at 6.02 MnT . The seasonal effect (monsoon) and rake availability issues prevailing in eastern India has affected iron ore dispatches from Odisha.
Rungta Mines recorded highest dispatch in July`18 at 1.87 MnT, down 6% as against 1.99 MnT in June`18, followed by OMC at 0.67 MnT (down 17% M-o-M) and KJS Ahluwalia at 0.56 MnT (up 25% M-o-M).
NMDC (C.G) Iron ore dispatches down 35% in July`18
India`s largest iron ore miner, NMDC has supplied 206 rakes of iron ore from Bailadila mines, Chhattisgarh in July`18, down sharply as against 316 rakes in June`18.
Out of the total 206 rakes supplied, 34 rakes were moved to state based units, down 32% on monthly basis. A total of 172 rakes were supplied to outside CG based units (down 4% M-o-M).
Last month on 26th Jul`18, National Mineral Development Corporation (NMDC) had announced price revision and kept prices unchanged for NMDC C.G. but earlier on 10th July 2018 an increased in iron ore prices by INR 140-180/MT. Baila fines and lumps prices moved up by INR 150/MT and prices of ROM by INR 140/MT. DR-CLO prices were increased by INR 180/MT.
On 11th Jul`18, Indian government announced the export duty unchanged at 10% for iron ore exported from National Mineral Development Corporation (NMDC) to Japanese and Korean mills under Long Term Trade Agreement (LTA). However, NMDC iron ore exports have depicted nil in July`18 for the fourth consecutive month since Apr`18.
Karnataka iron ore e-auction Sales stood Four-Month High in Jul`18
Karnataka has registered 9% increase in iron ore sales via e-auctions in July`18. The sales recorded at 2.15 MnT in July`18 as against 1.97 MnT in June`18.
NMDC`s iron ore sales witnessed at 1.1 MnT in Jul`18, up 49% M-o-M compared to 0.74 MnT in Jun`18 owing to reduction in prices on 26th Jul`18. Fines prices have came down by INR 300/MT and lump prices by INR 100/MT.
NMDC Kumarswamy recorded an increase of 40% in its sales volume to 0.45 MnT in Jul`18 compared to 0.32 MnT in Jun`18 while sales from NMDC Donimalai mines increased significantly by 55% M-o-M to 0.65 MnT in Jul`18 against 0.42 MnT in Jun`18.
Indian iron ore imports up 68% M-o-M in July`18
Indian iron ore imports in July`18 recorded at 1.55 MnT, up by 68% as against 0.92 MnT in June`18. The rise in monthly imports is attributed to hike in iron ore prices by Odisha merchant miners resulting in shift towards imports. Major miners had announced price hike of INR 300/MT in lump and fines earlier in July`18 following increase in Royalty. Besides, logistics bottlenecks in eastern India further contributed to price rise. Again on 26th July, the Odisha miners raised iron ore fines prices by INR 150/MT.
JSW recorded largest importer in July`18 with imports at 1.27 MnT, up by more than two folds against 0.47 MnT in June`18.Out of the total imports, JSW imported 1.09 MnT from Australia and remaining 0.18 MnT from Brazil. The company imported 0.74 MnT iron ore at Krishnapatnam port while the remaining imports from Jaigarh port at 0.53 MnT. Amidst increasing prices by Odisha miners and NMDC (C.G), JSW has increased dependence on imports.
Other importers for the month were Essar Steel at 0.17 MnT (up 54% M-o-M) from Canada, and Kamachi Group at 0.11 MnT from South Africa.
Essar steel imported iron ore concentrate from Canada and imported 0.12 MnT of pellet from Bahrain in July`18.
Indian iron ore export dropped 3 years low in July`18
Indian iron ore exports in Jul`18 witnessed at 0.17 MnT, down 50% M-o-M as against 0.34 MnT in Jun`18. According to the Vessel line up data maintained by the SteelMint, the exports have dropped to lowest since Sept`15 which remained nil.
The exports witnessed a sharp decline for the month, as Goa contributing major proportion of Indian exports, observed no exports in July`18 , also exports from NMDC continued to remain nil in July`18. Besides, rake availability issues in eastern India along with monsoon have hampered movement for exports.
Indian Pellet Export down 32% in July`18
As per the vessel line up data maintained with SteelMint, Indian pellet exports for the month of Jul`18 witnessed decline of 32% to 0.56 MnT, as against 0.83 MnT in Jun`18.
Indian pellet export price assessment increased for Fe 64% above 2% alumina (regular grade) from USD 112/MT, FoB India in July`18 to USD 135/MT, FoB India in the current assessment.
BRPL stood the largest exporter for the month of July`18 at 0.29 MnT (up 26% M-o-M), followed by KIOCL at 0.17MnT (down by 30%), Jindal SAW at 0.06 MnT and JSPL 0.05 MnT.
Indian Iron Ore Movement July`18 v/s June`18
| States | July`18 | June`18 |
| Odisha | 5.88 | 6.02 |
| Karnataka | 2.15 | 1.97 |
| Chhattisgarh | 1.22 | 1.88 |
| Jharkhand | 0.45 | 0.44 |
| West Bengal | 0.04 | - |
| Import | 1.67 | 0.92 |
| Export | 0.73 | 1.16 |
Qty in MnT
Excluding SAIL & Tata Captive procurement
Source: SteelMint Research
