Indian Iron Ore Exports Up 82% Y-o-Y in CY19 on Increased Chinese Buying

Indian iron ore exports have recorded significant rise for the year CY19. The exports witnessed at 19.14 MnT, up 82% on yearly basis as against CY'18 exports at 10.53 MnT. Indian iron ore exports volume have rebounded for the year as the levels were last witnessed in CY17 at 19.88 MnT. Odisha merchant miners actively raised exports majorly of low grade to China in CY19.

Indian iron ore exports volume for Dec'19 witnessed marginally down at 2.28 MnT as against 2.29 MnT a month ago.

Reason behind the significant iron ore exports turnaround for the year

1. Global Material Shortage amid global supply crisis:
Indian iron ore exports picked up amid reduced material availability by major iron ore miners from Australia and Brazil. World's largest iron ore miner Vale underwent a dam disaster in Jan'19 following cyclone hit in Australia resulted further material crises. As a result, Vale, Rio Tinto, and other miners reduced the production guidance.

Vale towards Oct'19 revised the guidance to lower and midpoint of the range 307-332 MnT as against being towards the midpoint of the range.

2. High global prices :
The spot iron ore prices for the year (CY'19) increased to USD 94/MT, CFR China as compared to USD 70/MT, CFR China in CY18. The rising demand from Chinese mills and material crises in the global market led to rise in prices for the year.

Monthly average global iron ore fines (Fe 62%) index price in July'19 witnessed highest for the year at USD 120/MT,CFR China. The prices for the month were hovering five years high levels at USD 126/MT, CFR China towards early July.

Indian iron ore exports to China doubled in CY19

Indian iron ore exports to China for the year recorded at 16.48 MnT, up almost two folds on yearly basis as against 8.40 MnT in CY18. The increased demand amid global supply constraints led to stimulate iron ore exports from India. Japan stood second largest at 1.70 MnT, up 11% followed by South Korea at 0.60 MnT.

Rungta turn the largest iron ore exporter with 4 MnT in CY'19
Rungta mines stood the largest iron ore exporter in CY19 at 4.12 MnT, up 78% as against 2.31MnT in CY'18. SM Niryat stood second-largest exporter for the year and its exports picked up sharply to 3.89 MnT (up against 0.32 MnT in CY18), followed by MMTC at 2.30 MnT, up 63% Y-o-Y.

Qty in MnT, Provisional data,
Source: SteelMint Research, Customs

Paradip port stood largest iron ore exporter in CY'19

For CY'19, Paradip port stood the largest exporter of Indian iron ore at 8.53 MnT, up to four folds as compared to 2.10 MnT in CY18. Vizag port stood second largest at 3.77 MnT, followed by Haldia at 1.98 MnT and Gangavaram at 1.38 MnT.