Indian Iron Ore Movement Down 13% in Jan'19

As per SteelMint's analysis, iron ore movement across major producing states of the country recorded at 10.51 MnT (excluding exports) in Jan'19. The iron ore movement has recorded 13% fall against 12.13 MnT in Dec'18. The figures are compiled on the basis of movements made via railways, trucks, and 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 14% on monthly basis

Iron ore dispatches from Odisha in Jan'19 witnessed at 5.62 MnT, down by 14% as against Dec'18 dispatches at 6.54 MnT.

Few major merchant miners are heard to have utilized their EC limits for FY'19 owing to which they do not have much material to offer in the market till March. Recently, in this month Odisha merchant miners increased iron ore offers sharply.

Rungta Mines recorded highest dispatch in Jan'19 at 1.40 MnT, down 8% as against 1.53 MnT in last month, followed by Serajuddin at 0.61 MnT (down 12% M-o-M) and OMC at 0.51 MnT (down 31% M-o-M).

Iron ore dispatches from C.G down marginally in Jan'19

India's largest iron ore miner, NMDC supplied 354 rakes of iron ore in Jan19, up 5% on monthly basis, against 336 rakes in Dec'18. NMDC C.G had slashed iron ore price between INR 300-465/MT for Jan'19.

Total iron ore dispatches from Chhattisgarh up by 3% to 1.77 MnT in Jan'19 as against 1.73 MnT in Dec'18.

Karnataka iron ore e-auction sales up 20% in Jan'19

Karnataka has registered an increase of 20% M-o-M iron ore sales volume in Jan'19 e-auction. Total iron ore allotted quantity stood at 2.49 MnT in Jan'19 compared to 2.07 MnT in Dec'18.

NMDC's iron ore sales increased by almost three-times M-o-M to 1.05 MnT in Jan'19 compared to 0.39 MnT in Dec'18. NMDC's announcement of temporarily suspending operations at Donimalai in Karnataka does not seem set for a quick resolution with the Centre intervening to broker peace between the miner and the Karnataka government. As per the senior state-level officials, NMDC has approached the Karnataka High Court for an urgent hearing on NMDC Donimalai lease renewal. As per the sources, High Court has adjourned the matter till next date of Feb 25th, 2019.

Indian iron ore imports Fell 19 month Low in Jan'19

Indian iron ore import in Jan'19 witnessed at 0.19 MnT according to the customs data maintained by SteelMint. The imports have dropped 87% on monthly basis as against 1.46 MnT in Dec'18.

Indian iron ore imports dropped amidst decline in domestic iron ore prices, force majeure at krishnapatnam port and hike in global iron ore prices.

Indian iron ore exports down 23%, pellet exports up 46% in Jan'19

Indian iron ore exports in Jan'19 was recorded at 0.64 MnT, down 23% as against 0.83 MnT in Dec'18. On yearly basis, the exports dropped by 46% as against 1.18 MnT in Jan'18. MMTC stood the largest exporter of iron ore in Jan'19 at 0.22 MnT, down 26% on monthly basis. SM Niryat stood second largest exporter at 0.15 MnT followed by VM Salgaonkar at 0.10 MnT.

Indian pellet exports have marked rise of 46% to 1.02 MnT in Jan'19 as against 0.70 MnT in Dec'18. On yearly basis, the exports increased 59% as compared to 0.64 MnT in Jan'18. The Indian pellet exports increased for the month amidst restocking ahead of pellet Lunar New Year holidays. SteelMint's pellet export price assessment stood at USD 101 MT, FoB India in Jan'19 against 100 USD/MT in Dec'18.

JSPL stood the largest exporter for Jan'19 with exports at 0.29 MnT up significantly as against 0.05 MnT in Dec'18. BRPL recorded pellet exports at 0.26 MnT (up 18% M-o-M), followed by KIOCL at 0.16 MnT and Rashmi Metaliks at 0.10 MnT.

Qty in MnT, Import and Export Fig includes pellet
Excluding SAIL & Tata Captive procurement
Source: SteelMint Research