The CMO Survey - Highlights and Insights Report - Spring 2024
Iron ore insight february
1. Steel int
TM
Steeling is Basic
SteelMint
Iron Ore
INSIGHT
10 February, 2014
Photo Source: www.steel-360.com/FotoMine.php
2. Steel int
TM
Steeling is Basic
SteelMint
Iron Ore INSIGHT
1
India Exported 1.1 MnT Iron Pellet
in Apr-Dec 2013
Indian Iron Pellet export market opened up
when domestic prices touched an all time
low at INR 6,100/MT (Ex-work Barbil) on 22
July, 2013. Exporters received a better
realization from overseas trades as Rupee
depreciated against USD and Chinese Iron
ore prices were high.
Jindal Steel was the biggest exporter and
exported 0.47 MnT followed by Essar &
Ardent
Companies's Iron Pellet Export in Apr-Dec, 2013
Paradip Port in East Coast exported
maximum quantity of 0.6 MnT
Company
Exported Qty
Jindal Steel
307,940
Ardent
5% export duty on Pellets imposed by
Indian Government on 27 Jan, 2014 has
lowered realizations by INR 500/MT
470,303
Essar Steel
China was the largest consumer of
Indian Pellets
121,850
BRPL
98,000
Ne ncon
73,000
Arya
35,000
Total
1,106,093
Qty in MT
Provisional Data
Iron Pellet Export from various Indian Ports in Apr-Dec, 2013
Month
Port
Shipper
Qty
Total Qty (Month Wise)
Des na on
-
Apr
-
-
-
-
May
-
-
-
-
-
Jun
Vizag
Essar
39,100
39,100
Vietnam
Jul
Vizag
Essar
65,100
65,100
China
Aug
Paradip
Jindal
48,000
-
Oman
Aug
Paradip
Jindal
53,000
101,000
China
Sep
Paradip
Jindal
50,000
-
China
Sep
Paradip
Jindal
51,803
101,803
China
Oct
Gangavaram
Jindal
54,000
-
China
Oct
Gangavaram
Jindal
49,000
-
China
Oct
Haldia
Ne ncon
22,500
-
China
Oct
Paradip
Ardent
43,200
-
China
Oct
Paradip
BRPL
50,000
218,700
China
Nov
Paradip
Jindal
7,500
-
Oman
Nov
Paradip
Essar
53,900
-
China
Nov
Paradip
Arya
35,000
-
China
Nov
Paradip
BRPL
48,000
-
China
Nov
Ardent
43,650
-
China
Nov
Paradip
Gangavaram
-
China
Haldia
Jindal
Ne ncon
53,000
Nov
22,500
-
China
Nov
Vizag
Essar
42,240
305,790
China
Dec
Gangavaram
Jindal
53,000
-
China
Dec
Paradip
Essar
54,000
-
China
Dec
Haldia
Ne ncon
28,000
-
China
Dec
Paradip
Essar
53,600
-
China
Dec
Gangavaram
Jindal
51,000
-
China
Dec
Paradip
Ardent
35,000
274,600
China
Grand Total
Qty in MT
Provisional Data
1,106,093
1,106,093
Source: SteelMint
Source: SteelMint
3. Steel int
TM
Steeling is Basic
SteelMint
Iron Ore INSIGHT
2
Prices as on 08 Feb, 2014
Par culars
Grade/Fe
Size
Prices (INR/MT)
M-o-M change
Odisha: Rungta mines (loaded to wagon, including Royalty)
63
5-18 mm
6,800
0
NMDC (Basic Prices, Royalty & Taxes Extra)
Iron Ore Fines
65
6-40 mm
4,500
0
Iron Ore Lumps
Domes c (Ex mines Odisha, including Royalty)
63
2,350
0
63.5/63
122
13
Odisha (Loaded to wagons, Basic Prices)
63
7,000
600
Bellary (Basic Prices)
63
60
7,900
7,200
0
0
Steel
24,000
500
Export (CNF China in USD/MT)
Iron Pellet
Pig Iron
Cu ack (Basic Prices)
Sponge Iron
Raipur (Basic Prices)
80 FeM
21,600
1,550
Source: SteelMint
Miners in Odisha kept Iron ore prices unchanged for Feburary 2014 as state government’s
restriction of only 50% Iron ore sales is allowed to outside states has offset chances of
price hike.
Odisha
Indian Iron Ore Prices (INR/MT) in Feb'14
Miners/E-auc on
State
Grade/Fe
5-18 mm
Grade/Fe
10-30 mm
Grade/Fe
Fines
6,800
63
6,270
63
2,650
63
6,025
63
2,675
63
2,620
Rungta
Odisha
63
Essel
Odisha
63
6,775
Serajuddin
Odisha
63
5,620
Indrani Patnaik
Odisha
63
5,200
61
4,500
63
2,200
KJS Ahluwalia*
Odisha
63
5,450
61
4,300
63
2,350
KN Ram
Odisha
62
5,600
62
2,450
Jharkhand
60-62
4,900
Singhbhum Minerals
60-62
4500
All Prices loaded to wagons; including Royalty | *Prices are Ex-mines: including Royalty | Prices are Ex-Jharkhand; including Royalty
Grade/Fe
NMDC
65
Cha sgarh
6-40 mm
Grade/Fe
10-150 mm
Grade/Fe
Fines
4,500
64
3,950
64
2,910
Grade/Fe
Lumps
Grade/Fe
Fines
Grade/Fe
10-40 mm
67
5,190
Grade/Fe
ROM
Basic Prices including royalty 10%
E-auc on (Jan)
Karnataka
67
3,545
63
3,849
60
2,661
E-auc on (Jan)
Karnataka
63
3,005
62.5
3,965
58
1,833
Royalty 10%, FDT 12% & VAT 5.5% Extra
Chhattisgarh
Source: SteelMint
NMDC hikes Iron ore fines prices by INR 100/MT over good demand. Offers for lumps
remain unchanged. Production and sales improved in January, at 3 MnT and 2.9 MnT
respectively.
4. Steel int
TM
Steeling is Basic
SteelMint
Iron Ore INSIGHT
3
Karnataka
Karnataka Iron Ore E-auction in Jan'14
Mines
984,000
3,901,000
3,705,000
Total
JSW was the biggest buyer and purchased 2.5 MnT Iron ore
1,100,000
Other Mines & Stockyards
Iron ore sales increased from 2.1 MnT in Dec’13 to 4.7 MnT in Jan’14
Bid Qty
NMDC
4.7 MnT Iron Ore sold in Jan 2014 in e-auctions
5,001,000
Qty in MT
Alloted Qty
4,689,000
Source: SteelMint
NMDC sold 1 MnT Iron ore and other mines sold 3.7 MnT
NMDC's Donimalai & Kumarswamy Mines
In January 2014, average fines prices stood at INR 2,661/MT and lumps at
INR 2,635/MT (basic, Fe 60)
Material type
Fines
556,000
460,000
Lumps
Sesa Sterlite set higher base price at INR 4,000/MT (basic) for Fe 58 fines
on 31 Jan, 2014
Bid Qty
544,000
524,000
Qty in MT
Alloted Qty
Source: SteelMint
In Nov, 2013, Supreme Court allowed e-auction of 15 MnT Iron ore lying at jetty and stock point. Goa
government invited application from prospective bidders on 14 Jan, 2014; only qualifying bidders can
participate.
Goa
Iron Ore
E-auction on
17 Feb, 2014
About 5,70,000 MT (Fe 47-56/50) Iron ore (fines & lumps) would be auctioned in the first phase,
which belongs mainly to Sesa Mining and Sesa Sterlite, VM Salhgaocar, Timblo Enterprises, SFI,
Chowgule and MSPL. Iron ore could be utilized for sale, domestic consumption or can be exported.
Transportation of ore would begin within 30 days of auction.
Singbhum Minerals Company, operated by Thriveni Earth Movers restarted Iron ore mining
operations in February, 2014. The mines have an Environment Clearance (EC) of 0.4 MnT pa.
Jharkhand
Iron ore export drops from 1.3 MnT in Dec’13 to 1 MnT (
India Exported
1 MnT Iron
Ore in Jan’14
27%) in Jan’14
Demand from China weakened because of New Year Holidays from 31 Jan, 2013 to 05 Feb, 2014
Rungta Mines was the largest exporter and exported 163,000 MT Iron ore
Paradip port exported 0.5 MnT;
by 10.8% M-o-M
Iron Ore Export from various Indian Ports in Jan 2014
Shipper
Paradip
Haldia
Vizag
Dhamra
Gangavaram
Redi
Grand Total
Rungta Mines
Bagadiya Brothers
56,000
72,600
20,000
-
33,000
-
72,582
54,000
-
-
163,000
145,182
Kashvi Power
111,439
-
-
-
-
-
111,439
SM Niryat
109,185
-
-
-
-
-
109,185
Kalinga Allieds
80,700
-
-
-
-
-
80,700
MMTC
-
-
78,210
-
-
-
78,210
Royal Lines
-
-
58,400
-
-
-
58,400
Samruddha
-
-
-
-
-
56,500
56,500
LG Minerals
Essel Mining
51,492
-
16,200
22,300
-
-
-
51,492
38,500
Chamong Tea
-
20,710
-
-
-
-
20,710
20,000
20,000
-
-
-
-
-
20,000
20,000
Lords Blue
Maa Samelaswari
Sparsh Baldev
Grand Total
Provisional Data
Qty in MT
-
-
19,000
-
-
-
19,000
501,416
76,910
210,910
72,582
54,000
108,100
1,023,918
Source: SteelMint
5. Steel int
TM
Steeling is Basic
SteelMint
Iron Ore INSIGHT
4
Vessel Freight as on 08 Feb, 2014 with Previous Comparisons (Week 1)
Vessel Type
Freight
(USD/MT)
3 Months
(Nov)
6 Months
(Aug)
India East Coast - China
Supramax
15.0
14.5
10.8
Brazil- China
Capesize
19.8
22.1
20.3
South Africa -China
Panamax
21.1
20.1
18.5
Route
Source: SteelMint
Prices in USD/MT
139
137
136
134
134
136
133
Prices fall
sharply owing
to less
demand/stock
ing before
Lunar New
Year Holidays
129
129
124
Aug-13
Sep-13
Oct-13
Source: SteelMint
Trade Wise
Nov-13
Dec-13
Monthly Average Prices of
Sponge Iron in Raipur
Basic Prices in INR/MT
Monthly Average Prices of 63.5/63
Iron ore Fines, CNF China
Market was
vola le owing
to subdued demand
of Finished steel
products
21,000
20,600
20,000
19,000
20,400
20,150
20,200
20,300
19,000
18,000
Jan-14
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Source: SteelMint
Pellet prices drop to INR 7,000-7100/MT (ex works Barbil) because of weak domestic demand
and falling margins from exports
KIOCL retains domestic Pellet prices at INR 8,400/MT (basic) for Feburary 2014 owing to high
Iron ore prices; Jindal Saw (Rajasthan) maintains offers at INR 8,800-8,900/MT (delivered)
On 29 Jan, 2014, Essar Steel shipped 40,000 MT Pellets to Kamachi Steel (Chennai) at INR
7,500/MT FOB Vizag Port
On 20 Jan, 2014, Essar Steel closed 21,340 MT Fe 64 & DR grade Pellet export deal at USD
168/MT FoB with UK based trader; material was shipped from Paradip Port to Saudi Arabia
REPORT BY
CONTACT DETAILS
Seema Goenka
Raipur:
#301, Jeevan Parisar,
Rajeev Nagar
Behind Crystal Arcade
Raipur (C.G) - 492 007 India
Tel: +91 771 2284888
Analyst
Email: seema@steelmint.com
Mob: +91 9575100530
Alok Singh Thakur
Kolkata:
5th Floor, Vishvakarma Building,
86, Topsia Road,
South-West Block
Kolkata (W.B) - 700 046, India
Tel: +91 33 22852063
Associate-Research
Email: info@steelmint.com | Web: www.steelmint.com
SteelMint
Iron Ore
INSIGHT
10 February, 2014