India: Iron Ore Movement Drops 5% M-o-M in Oct'18

As per SteelMint's analysis, iron ore movement across major producing states of the country recorded at 11.42 MnT in Oct'18. The iron ore movement has recorded decline by 5% against 11.98 MnT in Sept'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 stood stable on monthly basis

Iron ore dispatches from Odisha in Oct'18 witnessed at 6.22 MnT, up slightly as against Sep'18 dispatches at 6.07 MnT.

Rungta Mines recorded highest dispatch in Oct'18 at 1.68 MnT, up 10% as against 1.53 MnT in Sep'18, followed by OMC at 0.79 MnT (up 13% M-o-M) and Serajuddin at 0.63 MnT (down 25% M-o-M).

NMDC (C.G) Iron ore dispatches surge 47% in Oct'18

India's largest iron ore miner, NMDC supplied 355 rakes of iron ore in Oct'18, up by 47% on monthly basis, against 241 rakes in Sep'18.

The total exports by the miner recorded at 39 rakes in Oct'18, up four folds on monthly basis as against 10 rakes a month before. The miner resumed exports in Sep'18 after a gap of five months (since Mar'18). Amid delay in renewing of LTA for export and finalising export duty, export volumes were lower earlier this year.

Karnataka iron ore e-auction sales hit 6 months low in Oct'18

Karnataka e-auction sales have decreased sharply by 41% M-o-M in Oct'18. The total allotted quantity of iron ore stood at 1.64 MnT in Oct'18 compared to 2.76 MnT in Sept'18.

NMDC's iron ore sales decreased by 21% M-o-M to 0.68 MnT in Oct'18 compared to 0.86 MnT in Sept'18. NMDC Kumarswamy recorded a sharp increase in its sales volume by 65% to 0.51 MnT in Oct'18 compared to 0.31MnT in Sept'18 while sales from NMDC Donimalai mines decreased by 69% to 0.17 MnT in Oct'18 compared to 0.55MnT in Sept'18.

Indian iron ore imports drop 9% in Oct'18

Indian iron ore imports in Oct'18 recorded at 1.02 MnT decline of 9% as against 1.12 MnT in Sep'18. On yearly basis, imports depicted increase to two folds as compared to Oct'17 imports at 0.49 MnT.

JSW Steel imported 0.52 MnT in Oct'18, down 29% compared to last month imports at 0.74 MnT. JSW Steel imported 0.19 MnT iron ore from Australia and 0.33 MnT from Brazil. Cost effective iron ore prices in domestic market must have resulted in lower import volumes.

India Iron ore export up more than three folds in Oct'18

Indian iron ore export increased significantly in Oct'18 and was recorded at 0.42 MnT, up more than three folds as against 0.12 MnT in Sep'18. Amidst uncertainty on sintering and production cuts in Chinese market, Chinese mills depicted preference for fines.
Fomento resources, Goa depicted exports at 0.08 MnT in Oct'18.

Indian exports to non-Chinese (such as Japan and Malaysia) market in Oct'18 recorded at 0.20 MnT against being nil a month before.

Indian pellet export decline 22% in Oct'18

Indian pellet exports for the month of Oct'18 witnessed a decline of 22% M-o-M to 0.74 MnT, as against 0.95 MnT in Sept'18. In the month of Oct, Indian pellet export price decreased sharply by USD 21/MT M-o-M to USD 117/MT, FoB India against a month before at USD 138/MT, FoB. Increased preferences for fines over pellets resulted in limited inquiries for pellet export.

On yearly basis, pellet export decreased 10% against 0.83 MnT in Oct'17.

Indian Iron Ore Movement Oct'18 v/s Sep'18

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