India: Iron ore, pellets export shipments rise over 50% m-o-m in Jan'23

India's iron ore and pellets exports in January, 2023 saw a significant rise of 51% to 3.42 million tonnes (mnt) as against 2.26 mnt seen in December, 2022, as per vessel line up data maintained with SteelMint.

The share of iron ore exports in January, 2023 was 2.49 mnt, a sharp 75% m-o-m rise from 1.42 mnt in December, 2022. Pellets exports in the month under review increased by 12% to 0.94 mnt from 0.84 mnt in the previous month.

Iron ore and pellets exports picked up post removal of the 45% export duty on pellets and the removal of export duty on low-grade iron ore. The recent recovery in global iron ore prices has also kept export bookings from India supported. Notably, Fe 62% iron ore fines index rose further to $130/t CFR China towards end-January, 2023 from $116/t CFR China, November, 2022. Global prices increased by around $35/t in the last two months.

China largest importer: India's iron ore exports to China stood at 2.28 mnt, rising sharply by 71%. However, pellets exports to China fell marginally by 2% m-o-m to 0.76 mnt in January, 2023.

Rungta mines top iron ore exporter: Rungta Mines remained the largest iron ore exporter in January, 2023 at 0.51 mnt followed by Vedanta and Praful Enterprises at 0.50 mnt and 0.30 mnt, respectively.

AM/NS India top pellets exporter: AM/NS India was the largest pellets exporter in January, 2023 at 0.26 mnt followed by JSW Techno Projects Management Limited (TPML) and Kudremukh Iron Ore Company Limited (KIOCL) at 0.17 mnt and 0.16 mnt, respectively.

Outlook: India's iron ore export is expected to increase in the upcoming months as demand for low-grade has increased from China post-holidays. As far as pellets export is concerned it may remain volatile on better domestic realisation.