India's iron ore export shipments down 7% in May'21 on lower Chinese buying

Indian iron ore export shipments were recorded at 3.69 million tonnes (mn t) in May'21, a 7% month-on-month (m-o-m) decline as comparedto 3.99 mn t in Apr'21, according to vessel line-up data maintained withSteelMint.

Apart from uncertainty prevailing amidstquarantine measures in China for Indian cargoes and port delays, subdued interest for low-grade ore in China resulted in a fall in exports.

China's top steel-making city, Tangshan, had imposed mild-to-medium air pollution curbs from 18-22 May'21.Sintering machines, rotary kilns of cement plants and foundry (except for EAFs), brick/tile furnaces were ordered to suspend operations from midnight to 10 a.m. This resulted in preference for high-grade ores.

Low-grade ore prices fall sharply:A major Australian miner also significantly increased the discount on low-grade ore for May'21 shipments. SteelMint learned from market participants that the miner increased the discount of SSF low-grade fines (Fe 56.7%) from 10.5% in Apr'21 to 18%for May'21 deliveries.

As per SteelMint's assessment, Fe 57% Indian iron ore fines prices fell from $102/tonneFoB east coast of India around mid-May'21 to $87/t towards the end of the month. Indian iron ore export prices declined in the second half of May after global iron ore prices plunged from 10-year high levels following a steep decline in futures.

Indian iron ore exports to China down: China continued to remain the largest importer of Indian iron ore in May'21 with 3.65 mn t, down 7%as against 3.93 mn t seen in Apr'21. Kenya was the second-largest importer at 0.05 mn t.

Exports to Japan and Korea remained nil as NMDC's long-term export contract is yet to be renewed.NMDC's long-term iron ore export contracts with Japanese steel mills (JSMs) and South Korea's POSCO, which were to be renewed on 31 Mar'21, have been delayed. As a result, its exports rake movements from Chhattisgarh mines, collated on a monthly basis, show nil since Apr'21.

Rungta largest exporter: Rungta Mines was the largest iron ore exporter at 0.66 mn t, in May'21, down 39% as against 1.08 mn t seen in Apr'21. Fomento was the second-largest exporter at 0.42 mn t, followed by SM Niryat at 0.30 mn t and AnimeshIspat at 0.22 mn t.

Shipper-wise Indian iron ore exports in May'21 versus Apr'21

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

Port-wise Indian iron ore exports: In May'21, Paradip Port accounted for 39% of monthly exports at 1.43 mn t (up 24% m-o-m) followed by Mormugao Port at 0.71 mn t and Vizag Port at 0.52 mn t.