Indian iron ore export shipments up 20% in Oct'21 on bookings from Goa

India's iron ore export shipments witnessed a rise of 20% m-o-m in Oct'21to 327,996 tonnes (t) as against 273,264 mn t in Sept'21, according to the vessel line-up data maintained with SteelMint.

Active export bookings from Goa of the auctioned mineral boosted the overall volumes from India. The government of Goa organised the 26th e-auction for 1.574 mn t of iron ore on 31 Aug'21. About 0.81 mn t (52% of total) of this volume was booked out of the total offered quantity. The majority of the quantity put under auction was low-grade with the highest grade (as per DMG analysis) reaching Fe 58.01%. Out of the total offered quantity, 1.12 mn t is run-of-mine (ROM) and within grades ranging from Fe 30.12-57.74%, 0.33 mn t are fines having Fe content of 18.6-50.60% and 0.12 mn t are lumps ranging from Fe 38.94-58.01%.

Highlights

• Widening discounts on low-grade ore: A major Australian iron ore miner has increased the sub-grade iron ore discount for super special fines (SSF) amid the continued reduction in Chinese buying interest, as per latest available reports. According to sources, the iron ore miner has increased the discount for SSF fines for the month of Nov'21 to 42% against 40% in Oct.
  
  
• Falling realisations in exports: As per SteelMint's assessment, Fe 57% Indian iron ore fines prices fell from $96/t CNF China at the beginning of August to $65/t CFR China towards mid-Sept'21.
  
  
• Indian iron ore exports to China rise 15% m-o-m: China continued to remain the largest importer of Indian iron ore in Oct'21 with 312,996 t, up by 15% as against 273,264 mn t seen in Sept'21. Exports to Japan and Korea remained nil as NMDC's long-term export contracts expired at the end of last fiscal. NMDC's long-term iron ore export contracts with Japanese steel mills (JSMs) and South Korea's POSCO have been scrapped as its key sop of a reduced 10% export duty has been removed as against the normal 30% paid by private iron ore exporters.
  
  
• Shipper-wise exporters in Oct'21: Fomento Resources emerged as the largest iron ore exporter at 127,300 t in Oct'21. Essel Mining was the second-largest exporter at 77,500 t.
  
  

Shipper-wise Indian iron ore exports in Oct'21 versus Sept'21

Qty in t, provisional data,
Source: SteelMint Research, Customs

Port-wise Indian iron ore exports:

In Oct'21, Mormugao Port accounted for 39% of the monthly exports at 127,300 t (up 121% m-o-m) followed by Paradip Port with 108,196 t and Gopalpur Port with 77,500 t.

Outlook

China's iron ore demand is expected to remain soft till December amid industrial measures placed ahead of the Winter Olympics, steel output curbs and fall in global prices, factors which have continued to restrict export bookings from India.