India: Iron ore export shipments slump in Feb'22 on lower Chinese buying

India's iron ore export shipments stood at 0.16 million tonnes (mnt) in Feb'22, a sharp fall of 82% m-o-m as against 0.88 mnt in Jan'22, according to vessel line-up data maintained with SteelMint.

China, the sole importer

China was the only iron ore importer from India at 0.16 mnt in Feb'22. However, export volumes to China witnessed a sharp fall of 81% on month compared to 0.85 mnt in Jan'22.

Shipper wise exporters in Feb'22

Rungta Mines was the largest iron ore exporter in Feb'22 at 0.06 mnt followed by Praful Enterprise and Kai International at 0.05 mnt, each.

Why have iron ore exports fallen?

• Lower Chinese buying: Indian iron ore export volumes remained on the lower side in Feb'22 due to the Winter Olympics in China, a period during which the country witnessed stringent steel production curbs and preferred high-grade ore (especially lumps or pellets) due to environmental concerns.
  
  
• Higher lower-grade export prices: SteelMint's assessment of India's iron ore exports (Fe 57%) prices stood at around $35-40/t FOB levels in mid-Jan'22 and $40-42/t levels in mid-Feb.
  
  

Outlook

Amidst weaker Chinese buying interest for low-grade fines and limited deals concluded, export volumes are likely to remain range-bound this month.