Indian Iron Ore Movement Up 6% in FY'20

As per SteelMint's analysis, iron ore movement across major producing states of the country recorded at 144.76 MnT (excluding exports) in FY'20, up 6% as against 137.20 MnT in FY'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 moved up 21% in FY'20
Odisha- India's largest iron ore producing state recorded total merchant iron ore dispatches at 89.08 MnT in FY'20, up 21% as against 73.39 MnT in FY'19. The dispatches moved up on increased procurement from pellet, sponge and steel mills. The figures exclude movement for export and dispatches of miners- SAIL & Tata Steel.

As per market sources report to SteelMint, Odisha iron ore bookings had minimized towards last two months amid concerns over material delivery by 31st Mar 2020. Also, Few major miners had already finished their EC limit, rendering limited production.

Dispatches from Chhattisgarh remain stable
Iron ore dispatches from Chhattisgarh recorded at 20.5 MnT iron ore in FY'20, against 20.4 MnT in FY'19.

NMDC's total iron ore sales for the fiscal FY20 (Apr'19-Mar'20) recorded at 31.53 MnT as against 32.36 MnT in FY'19. Out of the total, 78% of total sales contributed by Chhattisgarh at 24.48 MnT,up 5% on yearly basis.

NMDC has supplied a total of 378 rakes (1.46 MnT) of iron ore in the month of Mar'20, down 5% against 399 rakes (1.54 MnT) a month before in Feb'20, according to railway movement data maintained with SteelMint.

Karnataka iron ore e-auction sales picked 13% in FY20
Karnataka has registered an increase of 13% in yearly sales e-auction volumes in FY'20. Total iron ore allotted quantity in FY'20 was recorded at 30.04 MnT in FY'20 compared to 26.52 MnT in FY'19.

NMDC sold 6.96 MnT iron ore via Karnataka e-auctions in FY20, less by 25% Y-o-Y against last year at 9.23 MnT (including nos. of Donimalai production till Nov'18). Iron ore sales from Vedanta were recorded more than double at 6.29 MnT in FY20 against the last fiscal at 2.46 MnT.

Indian iron ore imports fell significantly in FY'20
Indian iron ore imports for the fiscal FY'20 were recorded at 1.21 MnT. The imports have dropped significantly by 90% as against 12.36 MnT in FY'19. The imports fell amid high import prices and global material shortage. The spot iron ore fines price for the year FY'20 increased to USD 95.5/MT, CFR China as compared to USD 71.3/MT, CFR China in FY'19.

Indian pellet imports for the fiscal year FY20 witnessed at 53,800 MT as against 628,141 MT in FY'19. Indian pellet imports from May'19- Mar'20 stood nil. The pellet imports have dropped amid global material shortage caused by world's major miners followed by increased dependence on domestic pellets.

Indian iron ore exports volumes up over three folds in FY'20
Indian iron ore exports in FY'20 were recorded at 25.14 MnT, according to data maintained with SteelMint. The exports witnessed rise of more than three folds as against 6.81 MnT in FY'19 due to increased Chinese buying and high spot prices.

Indian pellet export volumes for the fiscal year FY'20 was recorded at 12.62 MnT, up 38% as against 9.16 MnT in FY'19.

Indian Iron Ore Movement

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