Indian Iron Ore Exports Down 7% M-o-M in Aug-17

Indian iron ore exports have been down 7% M-o-M in Aug’17. India exported 0.54 MnT material in Aug’17 compared to 0.59 MnT in Jul’17. However the exports were up 5% Y-o-Y compared to Aug’16 which were at 0.52 MnT then.

The export scenario for steelmaking raw material from India is expected to change in coming months as the demand for higher grade iron ore is on the rise in China as a result of pollution control measures there. The use of sinter and low grade material has already been reduced by millers over higher grade or pellet as feeder.

More than few pellet export deals have already been reported from India recently with greater realizations; similar boost is expected for iron ore trade in near future.  The monthly average spot iron ore fines (Fe 62%) prices for Aug’17 were USD 76/MT CNF China against USD 67/MT, CNF China in Jul’17 up USD 9/MT. The neglected low grade Indian iron ore fines are forced to trade at the discounted rate of 42-43% currently.

The exporters for the month have loaded the cargoes from the ports of Vizag, Andhra Pradesh and Paradip & Dhamra, Odisha as well as Haldia in West Bengal.

MMTC largest exporter for Aug’17 �" MMTC was the largest exporter in Aug’17 at 0.29 MnT compared to 0.22 MnT in Jul’17. Other exporters were S M Niryat at 0.12 MnT, Rungta Mines at 0.06 MnT, Bagadiya Brothers at 0.05 and Moorgate Industries at 0.02 MT.

China accounted for 46% share in Aug’17 Indian iron ore exports - China remains the top destination for Indian iron ore export for the month of Aug’ 17 with the share of 0.25 MnT (46%) followed by Japan and South Korea.

Port-wise iron ore exports from India in Aug’17 �" 0.29 MnT iron ore was exported from Vizag port in Aug’17, up 17% M-o-M. Iron ore exports from Odisha ports have decreased by 26% however port wise increase of 30% was recorded from Paradip port but lowered 66% from port Dhamra. In July there were no exports from Haldia port.