Indian Iron Ore Movement Down 17% in Jan'20

As per SteelMint's analysis, iron ore movement across major producing states of the country recorded at 12.93 MnT (excluding exports) in Jan'20, down 17% M-o-M as against 15.52 MnT in Dec'19. 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 decreased 11% in Jan'20

Odisha- India's largest iron ore producing state recorded total iron ore dispatches at 8.33 MnT in Jan'20, down 11% on a monthly basis as against 9.32 MnT in Dec'19. The figures exclude movement for export and dispatches of miners- SAIL & Tata Steel.

Few major miners had already made aggressive bookings in last month's as steel mills were actively restocking ahead Mar'20 lease expiry.

Dispatches from C.G stable in Jan'20
Iron ore dispatches from Chhattisgarh recorded at 1.97 MnT iron ore in Jan'20, stable M-o-M.

NMDC (Chhattisgarh) supplied a total 383 rakes (1.47 MnT) in first month of the year 2020, down slightly against 387 rakes (1.49 MnT) of iron ore in the month of Dec'19, according to railway movement data maintained with SteelMint. NMDC Ltd increased the prices from its mines twice in the month of Jan'20.

Karnataka iron ore E-auction sales dropped 38% for the month
Karnataka e-auction sales volumes dropped down sharply by 38% in Jan'20 to 2.25 MnT as compared to 3.6 MnT in Dec'19. Karnataka's monthly iron ore sales hit almost eight months low in Jan'20 as similar levels were last seen in May'19 at 2.3 MnT. As per the sources, Karnataka iron ore miners have sold out most of their material hence they had less material to offer in the month of Jan'20.

Indian iron ore imports fell marginally in Jan'20
Indian iron ore imports for the Jan'20 fell to 99,000 MT against 101,400 MT in Dec'19. The imports dropped amid global material availability crisis and high global prices. The spot iron ore fines (Fe 62%) increased on monthly basis to USD 92.63/MT, CFR China in Jan'20 against last month at USD 91.43/MT, CFR China.

Indian iron ore exports volumes hit 2 Months high in Jan'20
Indian iron ore exports in Jan'20 were recorded at 2.85 MnT in Jan'20, highest since Apr'17, according to data maintained with SteelMint. The exports witnessed increase of 25% on monthly basis as against Dec'19 exports at 2.28 MnT.

Rungta mines stood the largest iron ore exporter in Jan'20 at 1 MnT, contributing 35% of total exports for the month.

Indian pellet exports down 20% in Jan'20
According to data maintained with SteelMint, Indian pellet export volumes in Jan'20 recorded at 1.05 MnT, down 20% on monthly basis as against 1.31 MnT in Dec'19. The drop in exports is attributed to falling Chinese demand amid New Year Holiday's which begun from 24th Jan'20 followed by coronavirus outbreak in China.

BRPL marked the largest Indian pellet exporter for the month at 0.29 MnT, down 14% compared to 0.34 MnT in Dec'19.

Indian Iron Ore Movement

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