India: Iron ore export shipments dip 2% in Jul'21 on limited Chinese buying

India's iron ore export shipments witnessed a dip of 2% at 2.05 million tonnes (mn t) in Jul'21 as against 2.09 mn t in Jun'21, according to the vessel line-up data maintained with SteelMint. Limited Chinese demand for low-grade ore kept Indian exports lower.

In addition to the prevailing uncertainty amidst China's quarantine measures for Indian cargoes and port delays, subdued interest for low-grade ore in China resulted in a fall in exports.

Prices under pressure

As per SteelMint's assessment, Fe 57% Indian iron ore fines prices fell from $119/t CNF China in mid-Jun'21 to $111/t CFR in mid-Jul.

Recently, a major Australian iron ore miner increased the discount for sub-grade iron ore or super special fines (SSF) on the back of falling overseas demand and steel margins in China. According to sources, the company has increased discount for SSF fines for Aug'21 by 27% against 22.5% in Jul.

Indian iron ore exports to China down

China continued to remain the sole importer of Indian iron ore in Jul'21 with 2.05 mn t, down 2% as against 2.09 mn t seen in Jun'21.

Exports to Japan and Korea remained nil as NMDC's long-term export contracts expired at the end of last fiscal. NMDC's long-term iron ore export contracts with Japanese steel mills (JSMs) and South Korea's POSCO have been scrapped as its key sop of a reduced 10% export duty has been removed as against the normal 30% paid by private iron ore exporters.

Rungta largest exporter

Rungta Mines was the largest iron ore exporter at 0.7 mn t in Jul'21, up 25% as against 0.56 mn t seen in Jun'21. PTCL Infrastructure was the second-largest exporter at 0.13 mn t, followed by Seven Hills at 0.11 mn t.

At present, PTCL is one of the key contractors for the 4-mn t capacity JSW Steel plant at Vijaynagar, Karnataka and the 1 mn t JSW Steel plant in Salem, Tamil Nadu.

Shipper-wise Indian iron ore exports in Jul'21 versus Jun'21

Qty in t, provisional data,
Source: SteelMint Research, Customs

Port-wise Indian iron ore exports: In Jul'21, Paradip Port accounted for 38% of the monthly exports at 0.77 mn t (down 12% m-o-m) followed by Gopalpur Port with 0.61 mn t and Vizag Port with 0.37 mn t.