India: Iron ore imports resume after 10-month gap as global prices crash

India's iron ore imports resumed after a long gap of 10 months in Nov'21, as global prices crashed from end-Sept'21. The volumes stood at 0.1 million tonnes (mn t) in Nov'21 as against 0.14 mn t seen in Jan'21, according to vessel line-up data maintained with SteelMint.

Highlights

• South Africa, the sole exporter: South Africa was the largest and only iron ore exporter to India in Nov'21 with 0.1 mn t.
  
  
• Port-wise imports in Nov'21: Krishnapatnam Port emerged as the top Indian port with imports of 57,100 tonnes (t) of iron ore, up against 54,600 t in Jan'21. Jaigarh Port was the second-largest port with 45,000 t of iron ore imports.
  
  
• Company-wise imports in Nov'21: Two southern India-based mills, Pushpit Steel and Aone Steel, jointly booked a vessel and they were the largest importers of iron ore, at 57,100 t, in November, followed by Balaji Amines Resources, at 45,000 t.
  
  

Reason behind resumption in imports

A sharp correction in global iron ore prices resulted in the resumption in import bookings. The benchmark Fe 62% Australian fines prices, after touching dizzying heights of more than $230/tonne (t) around the third week of May'21, plummeted to $90/t CFR China levels in end-Sep'21.

SteelMint had reported in Sep'21 that two vessels of Kumba South African iron ore of Fe 64.5% were booked by the southern India-based companies. Prices for both deals were at around $113-114/t CIF Krishnapatnam.

Consequently, falling prices found parity with Indian domestic iron ore and pellet prices. Domestic prices of iron ore were hovering at around INR 6,700-7,000/t and that of pellets at INR 12,400/t in end-Sep'21.

Outlook

Both western India and southern India-based mills have continued to remain active in booking imported iron ore lumps from South Africa which will arrive in Dec'21-Jan'22. In addition, an integrated steel mill was also learned to have booked an iron ore fines import vessel from Australia. Thus, import volumes are likely to remain high in the short term.