Indian Iron Ore Movement Stable in August

As per SteelMint's analysis, iron ore movement across major producing states of the country recorded at 11.41 MnT in Aug'18. The iron ore movement has been recorded stable since past three months. The figures are compiled on the basis of movements made via railways, trucks, 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 increased marginally on monthly basis

Iron ore dispatches from Odisha in Aug'18 witnessed at 6.21 MnT, up against July'18 dispatches at 5.88 MnT. .

Rungta Mines recorded highest dispatch in Aug'18 at 1.75 MnT, down 6% as against 1.87 MnT in July'18, followed by OMC at 0.86 MnT (up 28% M-o-M) and Serajuddin at 0.74 MnT (up 57% M-o-M).

NMDC (C.G) Iron ore dispatches plunge 24% in Aug'18

India's largest iron ore miner, NMDC supplied 157 rakes of iron ore in Aug'18, down by 24% on monthly basis, against 206 rakes in July'18. Monsoons hampered iron ore production and dispatches.

Out of the total 157 rakes supplied, 18 rakes were moved to state based units, down 47% on monthly basis. A total of 139 rakes were supplied to outside CG based units (down 19% M-o-M).

In beginning of July, NMDC hiked iron ore prices by INR 140-180/MT from Chhattisgarh mines. Later on 22nd Aug, the miner increased prices by INR 140-170/MT with effect from 22nd Aug 2018. The miner increased Baila fines and lumps prices by INR 150/MT and prices of ROM by INR 140/MT and DR-CLO prices by INR 170/MT.

However, no movement for iron ore exports reported in Aug'18. NMDC iron ore exports have depicted nil since Apr'18.

Karnataka iron ore e-auction sales increased in Aug'18

Karnataka e-auctions sales have increased in Aug'18 amidst increased purchases by JSW steel. The sales recorded at 2.21 MnT in Aug'18 as against 2.15 MnT in July'18.
Towards the end of July, NMDC had cut base prices in e-auctions by INR 300/MT for fines and lumps by INR 100/MT resulting in increased procurement by JSW Steel.

NMDC's iron ore sales decreased by 8% M-o-M to 1.01 MnT in Aug'18 compared to 1.1 MnT in Jul'18. NMDC Kumarswamy recorded a sharp increase of 82% in its sales volume to 0.82 MnT in Aug'18 compared to 0.45 MnT in Jul'18 while sales from NMDC Donimalai mines has decreased significantly this month by 71% to 0.19 MnT in Aug'18 compared to 0.65 MnT in Jul'18.

Indian iron ore imports drop 11% in Aug'18

Indian iron ore imports in Aug'18 recorded at 1.38 MnT, decline of 11% as against 1.55 MnT in July'18.

JSW Steel stood the only importer for the month of Aug'18 at 1.38 MnT, up 9% compared to last month imports at 1.27 MnT. JSW Steel imported 1.2 MnT iron ore from Australia and 0.18 MnT from Brazil.

Essar steel and Kamachi Group depicted nil imports for the month against being 0.17 MnT and 0.11 MnT a month before. No shipments of Gujarat based mills for lump was seen however mills have booked South African lump for which deliveries are expected in September and October.

India Iron ore export reported nil in Aug'18

Indian iron ore exports recorded nil for the month of Aug'18. According to the vessel line up data maintained by SteelMint, this drop down is witnessed in iron ore exports, after a gap of 3 years, as it was last seen in Sep'15.

The exports witness sharp decline for the month, as Goa contributing major proportion of Indian exports, observed no exports in Aug'18 , also exports from NMDC continued to remain nil in Aug'18. Besides, weather constraints and Chinese demand for high grade iron ore has affected the Indian exports.

Indian pellet export decline 20% in Aug'18

As per the vessel line up data maintained with SteelMint Indian pellet exports for the month of Aug'18 witnessed a decline of 20% to 0.45 MnT, as against 0.56 MnT in Jul'18. Indian pellet export price assessments remained range bound at USD 109/MT, FoB India and then increased towards month end to USD 113/MT, FoB. This resulted in fewer export bookings for August shipments.

JSPL stood the largest exporter for the month of Aug'18 at 0.19 MnT (up almost fivefold M-o-M), accounting 42% of total Indian iron ore export share, followed by BRPL at 0.15 MnT (down by 47%), KIOCL at 0.06 MnT and Rashmi Metaliks 0.06 MnT.
Availability of rakes in eastern India remained a constraint for material transport from plants to ports.

Indian Iron Ore Movement Aug'18 v/s July'18

Qty in MnT
Excluding SAIL & Tata Captive procurement
Source: SteelMint Research