Indian Iron Ore Imports Fell 86% in CY19
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Indian iron ore imports for the year CY19 recorded at 2.19 MnT according to the data maintained by SteelMint. The imports recorded 86% fall against 15.66 MnT in CY'18.
Indian iron ore imports for Dec'19 depicted 17% drop on monthly basis to 0.10 MnT as against 0.12 MnT in Nov'19. The imports for consecutive three months from Aug'19 to Oct'19 witnessed nil amid competitive domestic offers.
Why Indian iron ore imports have dropped in CY'19?
1. Low domestic offers : Indian iron ore prices witnessed towards lower side for the year. Yearly average Odisha iron ore fines prices witnessed at INR 2,000/MT in CY19 against INR 2,600/MT in CY18, lump prices witnessed at INR 4,000 /MT in CY19 against INR 5,200/MT in CY18.
2. Costlier imports on 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, rendering imports unviable for the year. Offers for imported South African lump as well as Australian fines remained higher compared to domestic iron ore & pellets.
3. Global material availability crises: Towards early CY19, world's largest iron ore miner Brazilian Vale was hit by a dam disaster which led to a series of events as a consequence reduced the production guidance for the year. Also, later, Australian cyclone rendered major miners such as BHP group and Rio Tinto to reduce dispatches amid material availability crises.
JSW Steel imports down 91% in CY19: India's major steel maker- JSW stood the largest importer for the year CY'19 at 1.06 MnT down as against 11.41 MnT in CY'18. KIOCL recorded second largest importer at 0.28 MnT (up 19% Y-o-Y). Swiss Singapore reported imports at 0.20 MnT (down 33% ) followed by Varsana Ispat at 0.17 MnT.
Shipper wise iron ore imports
| Company | CY19 | CY18 |
| JSW Steel | 1.06 | 11.41 |
| KIOCL | 0.28 | 0.23 |
| Swiss Singapore | 0.20 | 0.30 |
| Varsana Ispat | 0.17 | 0.47 |
| Jindal Saw | 0.16 | 0.51 |
| Goa Sponge | 0.06 | 0.24 |
| Chowgule And Company | 0.06 | - |
| Others | 0.21 | 2.51 |
| Grand Total | 2.19 | 15.66 |
Qty in MnT, Provisional data,
Source: Steelmint Research, Customs
South Africa turned out to be the largest iron ore exporter to India in CY19: For CY19, South Africa stood the largest iron ore exporter to India at 0.80 MnT, down 76% as against 3.36 MnT in CY18. Iron ore Imports from Australia and Brazil fell in CY19 to 0.71 MnT (down 92%) and 0.56 MnT (down 79% Y-o-Y) respectively. Imports from Canada reported 28% drop to 0.12 MnT.
Port-wise Indian iron ore imports in CY19: Jaigarh port contributed the largest share of imports in CY19 at 0.89 MnT down 82% compared to 5.01 MnT in CY18. Mormugao stood second largest importer at 0.32 MnT followed by Kandla at 0.28 MnT.
