Iron ore insight february
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10 February, 2014
Stee intTM
Steeling is Basicl
SteelMint
Iron Ore INSIGHT
Stee intTM
Steeling is Basicl
Iron Ore INSIGHTSteelMint
1
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
India Exported 1.1 MnT Iron Pellet in Apr-Dec 2013
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 Paradip Ardent 43,650 - China
Nov Gangavaram Jindal 53,000 - China
Nov Haldia Ne�ncon 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 1,106,093 1,106,093
Qty in MTProvisional Data
Company Exported Qty
Jindal Steel 470,303
Essar Steel 307,940
Ardent 121,850
BRPL 98,000
Ne�ncon 73,000
Arya 35,000
Total 1,106,093
Qty in MTProvisional Data
Companies's Iron Pellet Export in Apr-Dec, 2013 Paradip Port in East Coast exported
maximum quantity of 0.6 MnT
China was the largest consumer of
Indian Pellets
5% export duty on Pellets imposed by
Indian Government on 27 Jan, 2014 has
lowered realizations by INR 500/MT
Source: SteelMint
Source: SteelMint
Stee intTM
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Iron Ore INSIGHTSteelMint
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Par�culars Grade/Fe Size Prices (INR/MT) M-o-M change
Iron Ore Lumps
Odisha: Rungta mines (loaded to wagon, including Royalty) 63 5-18 mm 6,800 0
NMDC (Basic Prices, Royalty & Taxes Extra) 65 6-40 mm 4,500 0
Iron Ore Fines
Domes�c (Ex mines Odisha, including Royalty) 63 2,350 0
Export (CNF China in USD/MT) 63.5/63 122 13
Iron Pellet
Odisha (Loaded to wagons, Basic Prices) 63 7,000 600
63 7,900 0
60 7,200 0
Pig Iron
Cu�ack (Basic Prices) Steel 24,000 500
Sponge Iron
Raipur (Basic Prices) 80 FeM 21,600 1,550
Bellary (Basic Prices)
Prices as on 08 Feb, 2014
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.
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.
Miners/E-auc�on State Grade/Fe 5-18 mm Grade/Fe 10-30 mm Grade/Fe Fines
Rungta Odisha 63 6,800 63 6,270 63 2,650
Essel Odisha 63 6,775 63 6,025 63 2,675
Serajuddin Odisha 63 5,620 63 2,620
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
Singhbhum Minerals Jharkhand 60-62 4,900 60-62 4500
Grade/Fe 6-40 mm Grade/Fe 10-150 mm Grade/Fe Fines
65 4,500 64 3,950 64 2,910
Grade/Fe 10-40 mm
67 5,190
Grade/Fe ROM Grade/Fe Lumps Grade/Fe Fines
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
All Prices loaded to wagons; including Royalty | *Prices are Ex-mines: including Royalty | Prices are Ex-Jharkhand; including Royalty
Royalty 10%, FDT 12% & VAT 5.5% Extra
Basic Prices including royalty 10%
Source: SteelMint
Source: SteelMint
Indian Iron Ore Prices (INR/MT) in Feb'14
NMDCCha�sgarh
Odisha
Chhattisgarh
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Iron Ore INSIGHTSteelMint
3
4.7 MnT Iron Ore sold in Jan 2014 in e-auctions
Iron ore sales increased from 2.1 MnT in Dec’13 to 4.7 MnT in Jan’14
JSW was the biggest buyer and purchased 2.5 MnT Iron ore
NMDC sold 1 MnT Iron ore and other mines sold 3.7 MnT
In January 2014, average fines prices stood at INR 2,661/MT and lumps at
INR 2,635/MT (basic, Fe 60)
Sesa Sterlite set higher base price at INR 4,000/MT (basic) for Fe 58 fines
on 31 Jan, 2014
Karnataka
Goa
India Exported
1 MnT Iron
Ore in Jan’14
Iron Ore
E-auction on
17 Feb, 2014
Source: SteelMint
Mines Bid Qty Alloted Qty
NMDC 1,100,000 984,000
Other Mines & Stockyards 3,901,000 3,705,000
Total 5,001,000 4,689,000
Qty in MT
Karnataka Iron Ore E-auction in Jan'14
Source: SteelMint
Material type Bid Qty Alloted Qty
Fines 556,000 460,000
Lumps 544,000 524,000 Qty in MT
NMDC's Donimalai & Kumarswamy Mines
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.
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.
JharkhandSingbhum 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.
Iron ore export drops from 1.3 MnT in Dec’13 to 1 MnT ( 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
Shipper Paradip Haldia Vizag Dhamra Gangavaram Redi Grand Total
Rungta Mines 56,000 20,000 33,000 - 54,000 - 163,000
Bagadiya Brothers 72,600 - - 72,582 - - 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 51,492 - - - - - 51,492
Essel Mining - 16,200 22,300 - - - 38,500
Chamong Tea - 20,710 - - - - 20,710
Lords Blue - 20,000 - - - - 20,000
Maa Samelaswari 20,000 - - - - - 20,000
Sparsh Baldev - - 19,000 - - - 19,000
Grand Total 501,416 76,910 210,910 72,582 54,000 108,100 1,023,918
Provisional Data
Qty in MT
Iron Ore Export from various Indian Ports in Jan 2014
Source: SteelMint
Stee intTM
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Iron Ore INSIGHTSteelMint
4
Route Vessel TypeFreight
(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
Vessel Freight as on 08 Feb, 2014 with Previous Comparisons (Week 1)
137
134 133
136 136
129
124
129
134
139
Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14
Pri
ces
in U
SD/M
T
Monthly Average Prices of 63.5/63 Iron ore Fines, CNF China
Source: SteelMint
Prices fall
sharply owing
to less
demand/stock
ing before
Lunar New
Year Holidays
Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14
Source: SteelMint
19,000
20,60020,400
20,150 20,20020,300
18,000
19,000
20,000
21,000
Bas
ic P
rice
s in
IN
R/M
T
Monthly Average Prices of Sponge Iron in Raipur
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
Trade Wise
Seema GoenkaAnalyst
Email: seema@steelmint.com
Mob: +91 9575100530
Iron OreSteelMint
INSIGHT
CONTACT DETAILS
Alok Singh ThakurAssociate-Research
Raipur:
#301, Jeevan Parisar,
Rajeev Nagar
Behind Crystal Arcade
Raipur (C.G) - 492 007 India
Tel: +91 771 2284888
Kolkata:
5th Floor, Vishvakarma Building,
86, Topsia Road,
South-West Block
Kolkata (W.B) - 700 046, India
Tel: +91 33 22852063
REPORT BY
Email: info@steelmint.com | Web: www.steelmint.com
Source: SteelMint
Market was vola�le owing
to subdued demand of Finished steel
products
10 February, 2014
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