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Page 1: Copyright © 2019 SteelMint · Indian Iron Ore Exports Up 82% Y-o-Y in CY'19 Indian iron ore exports volume for Dec'19 witnessed marginally down at 2.28 MnT as against 2.29 MnT a

Copyright © 2019 SteelMint

Page 2: Copyright © 2019 SteelMint · Indian Iron Ore Exports Up 82% Y-o-Y in CY'19 Indian iron ore exports volume for Dec'19 witnessed marginally down at 2.28 MnT as against 2.29 MnT a

Indian Iron Ore Exports

Up 82% Y-o-Y in CY'19

Indian iron ore exports volume for Dec'19 witnessed marginally down at 2.28 MnT as against

2.29 MnT a month ago.

Indian iron ore exports have recorded significant rise for the year CY19. The exports

witnessed at 19.14 MnT, up 82% on yearly basis as against CY'18 exports at 10.53 MnT. Indian

iron ore exports volume have rebounded for the year as the levels were last witnessed in

CY17 at 19.88 MnT. Odisha merchant miners actively raised exports majorly of low grade to

China in CY19.

PG | 01 Iron Ore Insight - January’20

Reason behind the significant iron

ore exports turnaround for the year

Vale towards Oct’19 revised the guidance to lower and midpoint of the range 307-332 MnT as

against being towards the midpoint of the range.

The spot iron ore fines (Fe 62%) price for the year (CY’19) increased to USD 94/MT, CFR China

as compared to USD 70/MT, CFR China in CY18. The rising demand from Chinese mills and

material crises in the global market led to rise in prices for the year.

Monthly average global iron ore fines (Fe 62%) index price in July’19 witnessed highest for

the year at USD 120/MT,CFR China. The prices for the month were hovering five years high

levels at USD 126/MT, CFR China towards early July.

High global prices:

Global material shortage amid global supply crisis:

Indian iron ore exports picked up amid reduced material availability by major iron ore miners

from Australia and Brazil. World’s largest iron ore miner Vale underwent a dam disaster in

Jan’19 following cyclone hit in Australia resulted further material crises. As a result, Vale, Rio

Tinto, and other miners reduced the production guidance.

Page 3: Copyright © 2019 SteelMint · Indian Iron Ore Exports Up 82% Y-o-Y in CY'19 Indian iron ore exports volume for Dec'19 witnessed marginally down at 2.28 MnT as against 2.29 MnT a

Monthly Average Global

Iron Ore Fines (Fe 62%) Prices

PG | 02 Iron Ore Insight - January’20

Source: SteelMint Research

76

87 88

93

99

109

120

92 9389

84.5

91

60

70

80

90

100

110

120

130

Qty

in M

nT

Jan’19 Feb’19 Mar’19 Apr’19 May’19 Jun’19 Jul’19 Aug’19 Sep’19 Oct’19 Nov’19 Dec’19

CY'18 Average PriceUSD 70/MT

CY'19 Average PriceUSD 94/MT

Indian iron ore exports to

China doubled in CY19Indian iron ore exports to China for the year recorded at 16.48 MnT, up almost two folds on

yearly basis as against 8.40 MnT in CY18. The increased demand for low grade iron ore in

China amid global supply constraints led to stimulate iron ore exports from India. Japan

stood second largest at 1.70 MnT, up 11% followed by South Korea at 0.60 MnT.

Page 4: Copyright © 2019 SteelMint · Indian Iron Ore Exports Up 82% Y-o-Y in CY'19 Indian iron ore exports volume for Dec'19 witnessed marginally down at 2.28 MnT as against 2.29 MnT a

Rungta turned out to be the largest

iron ore exporter with 4 MnT in CY'19

PG | 03 Iron Ore Insight - January’20

Low grade iron ore fines export prices from Odisha moved up in CY19. Rungta Mines stood

the largest iron ore exporter in CY19 at 4.12 MnT, up 78% as against 2.31MnT in CY'18. SM

Niryat stood second-largest exporter for the year and its exports picked up sharply to 3.89

MnT (up against 0.32 MnT in CY18), followed by MMTC at 2.30 MnT, up 63% Y-o-Y.

Top Five Iron Ore Exporter

in CY'19

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

Company

Rungta Mines 4.12 2.31

SM Niryat 3.89 0.32

MMTC 2.30 1.41

Bagadiya Brothers 1.72 -

Kashvi Power & Steel 1.36 -

Others 5.74 6.49

Grand Total 19.14 10.53

CY'19 CY'18

Page 5: Copyright © 2019 SteelMint · Indian Iron Ore Exports Up 82% Y-o-Y in CY'19 Indian iron ore exports volume for Dec'19 witnessed marginally down at 2.28 MnT as against 2.29 MnT a

World's Major Countries Import

South KoreaChina Japan

PG | 04

China - world's largest iron ore consumer and importer recorded iron ore and pellet imports at 1069 MnT

in CY19 compared to last year imports at 1064 MnT. Iron ore imports from Australia & Brazil fell however

imports from India increased sharply in CY19.

Australia iron ore export has recorded marginal drop in CY’19. Australia's iron ore export shipments recorded at

847.96 MnT in CY'19, as compared to 852.68 MnT in CY’18 amid weather disruptions & operational challenges

Brazil recorded fall in export volumes in CY’19 by 15% to 334.67 MnT amid Vale mishap in Jan’19 as against

394.24 MnT in CY18.

Source: Vessel Lineup Data, SteelMint Research

World's Major Iron Ore Exporting Countries

Australia Brazil South Africa

68.33 71.979.54

31.2 27.25 24.67

3.62 4.91 6.04

0

10

20

30

40

50

60

70

80

90

Oct'19 Nov'19 Dec'19

Qty

In M

nT

Source: Customs data, SteelMint Research

90.65101.3

10.035.2 7.66

0

20

40

60

80

100

120

Nov'19 Dec'19

Qty

In M

nT

Iron Ore Insight - January’20

Page 6: Copyright © 2019 SteelMint · Indian Iron Ore Exports Up 82% Y-o-Y in CY'19 Indian iron ore exports volume for Dec'19 witnessed marginally down at 2.28 MnT as against 2.29 MnT a

China: Iron Ore Inventory

Source: SteelMint Research and Steelhome

As per data compiled by SteelHome consultancy, iron ore inventory at major Chinese ports decreased

to 127.05 MnT as on 22th Jan 2020 as compared to 129.5 MnT towards the end of Dec'19.

China’s Crude ROM production

Fig in MnT, Source: National Bureau of Statistics

PG | 05

According to the National Bureau of Statistics, China - recorded crude iron ore production at 858.9 MnT

in CY19, up 8% as against 793.04 MnT in CY18.

Iron Ore Pellet

0

1

2

3

4

5

6

7

8

9

10

110

115

120

125

130

135

140

145

150

155

19

th O

ct

2n

d N

ov

16

th N

ov

30

th N

ov

14

thD

ec

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th D

ec

11

th J

an

25

th J

an

11

th F

eb

22

nd

Fe

b

8th

Ma

r

22

nd

Ma

r

4th

Ap

r

19

th A

pr

5th

May

17

th M

ay

31

st M

ay

21

st J

un

e

5th

Ju

ly

19

th J

uly

2n

d A

ug

16

th A

ug

30

th A

ug

12

th S

ep

26

th S

ep

17

th O

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30

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th N

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9th

Ja

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22

nd

Ja

n

Pe

llet

Inve

nto

ry in

Mn

T

Iro

n O

re I

nve

nto

ry in

Mn

T

75.8

Sept’19 Oct’19

78.579.25

Nov'19 Dec’19

77.4

Iron Ore Insight - January’20

Page 7: Copyright © 2019 SteelMint · Indian Iron Ore Exports Up 82% Y-o-Y in CY'19 Indian iron ore exports volume for Dec'19 witnessed marginally down at 2.28 MnT as against 2.29 MnT a

Global Iron Ore and Pellets Prices-:

Particulars Grade (Fe %) Current Price Last Month’s Lowest

Last Month’s Highest

M-o-M

Prices in USD/MT, China, FoB India prices in USD/MT

Particulars SizeGrade (Fe %)

Current Price

Last Month’s Lowest

Last Month’s Highest M-o-M

5-18mm 63

Fines 63

10-40, DR CLO 67

6-40, Baila Lump 65

Baila Fines 63

Lump 63

Fines 60

Durgapur Pellets 63

Raipur Pellets 63

Bellary Pellets 63

Raipur Mills scale Fe 70/68%

Kandla Mills scale Fe 70/68%

India Domestic Iron ore Prices

Mill Scale Prices

Odisha

NMDC, Chhattisgarh

Karnataka

Odisha merchant miners hike iron ore twice in Jan'20, however bookings at increased offers remained low. OMC iron ore lump e-auction on 24th Jan’20. 390,000 MT got booked at close to base price & remaining fetched INR 290/MT above set base price

NMDC has increased iron ore prices twice in the month of Jan 2020.

India Domestic Pellet Prices

Raw Material Prices-:

NMDC (C.G.) prices are FoR, Royalty, DMF, NMET & other taxes extra, Karnataka e-auction bid prices are weighted avg & basic (Exclu. Royalty DMF and NMET)

Odisha Ex Mines Prices incld Royalty, DMF & NMET, Mills Scale:Raipur prices are ex-works and Kandla prices are delivered in INR/MT

Domestic pellet prices in India increased following hike in iron ore and sponge prices.

Mill scale prices increased sharply amid hike in both finished and raw material offers.

ROM 65

South African Lump 64

Australia Fines 62

India Low grade fines 58/57

FoB India Pellets 64

Spot Pellet Premium BF grade, Fe 65%

Spot Lump Premium Fe 62%

PG | 06

105 96 103 6

85 89 94 7

58.5 56 58 0.5

114 99 101.5 13.5

39 23.6 25.7 14.05

0.26 0.24 0.26 0.04

Mill scale prices increased sharply amid hike in both finished and raw material offers.

4650 3950 4650 400

2500 1950 2250 250

3720 3250 3720 700

3200 2800 3200 600

3010 2630 3010 570

2910 2560 2910 550

2800 2800 2800 20

1560 1560 1560 370

6450 5,900 6,850 50

7,400 6,300 7,100 400

6,900 6,250 6,600 300

2,950 2,750 3,000 200

2,750 2,750 2,750 0

Iron Ore Insight - January’20

Page 8: Copyright © 2019 SteelMint · Indian Iron Ore Exports Up 82% Y-o-Y in CY'19 Indian iron ore exports volume for Dec'19 witnessed marginally down at 2.28 MnT as against 2.29 MnT a

Oct’18Nov’18 Dec’18

Source: SteelMint, Provisional Data, Qty in MT, N/A: Not Available, Prices in USD/MT, CNF India basis

Iron ore and Pellets Stats

Fig in MnT, Source: Vessel data, SteelMint Research

Indian iron ore exports stood at 19.14 MnT, up 82% on yearly basis as against CY’18 exports at 10.53 MnT.

Exports to China doubled to 16.48 MnT in Cy19.

Indian pellet export volumes in CY'19 recorded at 13.01 MnT, up 59% on yearly basis as against 8.19 MnT in CY’18.

Tightening production curbs in China alongwith demand from non-Chinese markets, resulted in increase in Indian

pellet export volumes.

Iron Ore Insight - January’20PG | 07

Vessel freight to China

Route Vessel Type Freight in USD/MT

Indian East Coast Supramax

Brazil Capesize

South Africa Panamax

10

18.41

17.03

Oct'19 Nov'19 Dec'19

19.33

1.74 0.89

22.77

0.12

2.291.170.1

2.281.3

0

5

10

15

20

25

Iron ore Pellets Iron ore Pellets Iron ore Pellets

Production Imports Exports

Qty

In M

nT

Krishnapatnam South Africa Lumps 64.87 24,240 Pushpit Steels 105

Krishnapatnam South Africa Lumps N/A 24,240 Akshara Industries 102

Mormugao South Africa Lumps 63.86 53,000 Goa Sponge 115

Dec'18Unload Port  Origin Country Type  Grade  (Fe%)  Qty Importer Import Price

Port wise India Import Price in Dec'19

Page 9: Copyright © 2019 SteelMint · Indian Iron Ore Exports Up 82% Y-o-Y in CY'19 Indian iron ore exports volume for Dec'19 witnessed marginally down at 2.28 MnT as against 2.29 MnT a

JSW Steel Iron ore

Iron ore

Pellets

Iron ore

PelletsBhushan Steel

Essar Steel

Name of steel making company Iron ore/Pellets

Qty in MnT , Provisional data, Source: SteelMint Research, Customs Revised Data

Jun'19 Jul'19 Aug'19Name of steel making company Iron ore/Pellets

Iron ore/pellet sourcing pattern

of India’s major steel makers

Qty in MnT , Provisional data, Source: SteelMint Research, Customs Revised Data

Oct'19 Nov'19 Dec'19

IRON OREI N S I G H T | J A N U A R Y 2 0 2 0

0.002

2.33 1.9 2.71

1.05 1.19 1.14

- - -

0.31 0.41 0.4

0.001 0.002

Disclaimer: SteelMint has taken due care and caution in compilation of content. Information is just for reference not intended for trading purpose or to address your particular requirement. The content includes facts, views, and opinions are of individuals and not that of the SteelMint management. We and our content licensors do not guarantee or warrant the accuracy, completeness or timeliness of, or otherwise endorse these views, and opinions. SteelMint and its affiliates, or their employees, directors or agents shall not be liable or responsible for any loss or costs or any action whatsoever arising out of use or relying on the spot prices disseminated.

Indranath Jha(Research Analyst)

Monika Bajaj(Research Analyst)

#301, Jeevan Parisar,Rajeev Nagar BehindCrystal Arcade Raipur492007 (C.G) IndiaWeb: www.steelmint.com

Raipur - Kolkata