Sunday 22 December 2024 - 20:36

Date: 03 October 2019 , 18:39

News ID: 6694

NEWS SERVICE: MINES and MINERALS

Indian Iron Ore Export Shipments to China Halve in Sep’19

Indian iron ore export shipments in Sep’19 was recorded at 1.14 MnT, down 48% as against 2.20 MnT in Aug’19. On yearly basis, exports increased significantly compared to 0.12 MnT in Sep’18.

China continued to be the largest importer of Indian iron ore for the month of Sep’19 at 1.01 MnT, down 51% amid reduced demand as against 2.07 MnT in Aug’19. South Korea stood second-largest importer at 0.07 MnT followed by Japan at 0.05 MnT (down 35% M-o-M).

Indian iron ore exports volume in FY20 (Apr-Sep'19) witnessed at 10.67 MnT as against 2.57 MnT in FY19 (Apr-Sep). Monthly average global iron ore fines (Fe 62%) index price witnessed stable in Sep’19 to USD 92.5/MT, CFR China in line with the last assessment.

Why have Indian iron ore export volumes dropped in Sep’19?

1.Rise in iron ore inventory at Chinese ports: As per data compiled by SteelHome consultancy, iron ore inventory at major Chinese ports increased in Sep’19 to 126.7 MnT towards the beginning of the month as against 125.25 MnT towards the end of Aug’19, led to reduced imports by Chinese mills.

2.Fall in Chinese demand: Strict pollution control measures in major steelmaking city, Tangshan led to reduced demand. Towards the third week of Sep’19, amid rising pollution levels in China, the government of Tangshan raised pollution control measures and revised policy for production curbs. Also, the week-long national holiday in 1st week of Oct’19 rendered Chinese steel mills was less active in imports.

3.Impact of monsoons on production: Odisha iron ore production at 9.39 MnT down 12% due to monsoon, as against 10.65 MnT in July’19.

Indian low grade iron ore fines (Fe 57%) export prices fell to around USD 50-55/MT, CFR China by beginning of Sept'19, down by USD 15 against last couple of weeks.

Rungta continued to be India's largest iron ore exporter

Rungta stood the largest iron ore exporter in Sep’19 at 0.30 MnT, down 25% as against 0.39 MnT in Aug’19. SM Niryat stood second largest exporter and its exports dropped 36% to 0.20 MnT, followed by Essel mining at 0.17 MnT.

Iron ore exports from Paradip port down 15% M-o-M

In Sep’19, Paradip port stood the largest exporter of Indian iron ore at 0.61 MnT, down 15% as compared to 0.71 MnT last month. Vizag port stood second largest at 0.27 MnT, followed by Krishnapatnam at 0.10 MnT and Gangavaram at 0.08 MnT.