steelmint ironore insight - march 2014
DESCRIPTION
Key features covered on this report are domestic Iron Ore Lumps Prices and Iron ore Pellets Prices around the various region of India.TRANSCRIPT
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12March
2014
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The sales of Iron ore through e-
auction started on 14 Sep, 2011 in
Karnataka, after the Supreme Court
imposed a ban on mining owing to
illegalities.
In FY14 (Apr-Feb), miners in
Karnataka sold 27.7 MnT of Iron
ore through e-auction conducted
by MSTC
MSTC sold 27.7 MnT Iron Ore in FY14 (Apr-Feb) through Karnataka E-auction
JSW Steel was the biggest buyer
with 16.4 MnT Iron ore i.e. 59% of
total sales followed by BMM Ispat with
1.9 MnT
Iron ore fines prices weakened in Q4
(Jan-Feb’14) owing to falling demand
in domestic Pellet market
Material Type W.A.Grade Q1 Q2 Q3 Q4
Fines 59 2,140 2,151 2,923 2,226
Lumps 62 3,814 3,504 3,780 3,838
ROM 54 1,820 1,071 1,906 1,865
Sub Grade 1,226 970 1,553 1,264
Prices are basic in INR/MT
W.A.= Weighted Average
Iron ore Prices in Karnataka E-auction in FY14 (Apr to Feb)
JSW Steel
59%
BMM Ispat7%
Xindia Steels 4%
Sesa Sterlite
3%
Sri RamanjaneyaIspat
3%
Others
24%
% Share of Iron Ore Purchased by Companies in FY 14 (Apr-Feb)
Material Type Quan�ty W.A. Price W.A. Grade
Fines 6,340,000 2,243 58
Lumps 3,072,000 3,733 62.5
ROM 3,152,000 1,497 53.7
Subgrade 3,866,000 1,054
JSW Steel
Material Type Quan�ty W.A. Price W.A. Grade
Fines 776,000 2,200
59.4
Lumps 16,000
2,375
54.8
ROM 942,000 2,083 56.3
Subgrade 206,000 1,407
BMM Ispat
Material Type Quan�ty W.A. Price W.A. Grade
Fines 620,000
2,475
60.7
ROM 80,000
2,820
62.6
Subgrade 392,000 2,190
Xindia Steel
Material Type Quan�ty W.A. Price W.A. Grade
Fines 328,000 2,862
61.6
Lumps 440,000 3,990 63
ROM 4,000 3,602 61
Sesa Sterlite
Material Type Quan�ty W.A. Price W.A. Grade
Fines 140,000 1,497 53
ROM 12,000 1,686 55
Subgrade 605,000 760
Sri Ramanjaneya Ispat
Top 5 Buyers in Karnataka E-auction in FY 14 (Apr to Feb)
Material Type Quan�ty W.A. Price W.A. Grade
Fines 2,548,000
2,580
59.8
Lumps 2,068,000
3,667
61.67
ROM 1,440,000
1,442
52.8
Subgrade 658,000 2,002
Others
W.A.(Weighted Average)
Quan�ty in MT | Prices in INR/MT
Source: SteelMint
Source: SteelMint
Source: SteelMint
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) 63.5/63 107 14
Iron Pellet
Odisha (Loaded to wagons, Basic Prices) 63 6,500 450
63 7,900 15060 7,100 100
Pig Iron
Cu�ack (Basic Prices) Steel 24,000 250
Sponge Iron
Raipur (Basic Prices) 80 FeM 20,500 900
Bellary (Basic Prices)
Prices as on 10 Mar, 2014
Miners in Odisha held Iron ore prices unchanged for Mar’ 14 owing to demand & supply
mismatch for outside sale. Only 50% of total material is permitted to be sold outside Odisha
despite high requirement.
The Odisha High Court verdict on Odisha Government 50:50 rules on Iron ore sales within &
outside the state are expected soon. Iron ore price expected to increase if the distribution
criteria removed.
NMDC holds Iron ore price for Mar’14 because of stability in Odisha Iron ore prices. Iron ore
production & sales in Feb’14 increased to 3.2 MnT & 3.1 MnT respectively.
PRICES
Fe 65 (6-40 mm): 4,500; Fe 64 (10-150 mm): 3,950; Fe 67 (10-40 mm): 5,190; Fe 64 (Fines): 2,910
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
ODISHA
CHHATTISGARH
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Iron Ore INSIGHTSteelMint
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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
RP Sao Odisha 63 4,850 62-63 1,900
Singhbhum Minerals Jharkhand 60-62 4,900 60-62 4500
Grade/Fe ROM Grade/Fe Lumps Grade/Fe Fines
E-auc�on (Jan) Karnataka 53 1,222 63 3,944 60 2,401
E-auc�on (Jan) Karnataka 49 435 62 3,838 60.5 2,477
Indian Iron Ore Prices (INR/MT) in Mar'14
NMDC
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
Cha�sgarh
Odisha Miners unaltered Mar’14 Iron Ore Prices
NMDC Iron ore Price Unchanged for March
In Nov’13, the Supreme Court allowed e-auction of already extracted 15 MnT Iron ore lying at jetty
(4 MnT), mines head (10.8 MnT) and port (0.2 MnT) in the state.
Iron ore could be utilized for export and domestic consumption
JSW did not participate owing to high logistics cost, transportation issues, uncertainty in Fe
content, high moisture content and inferior quality of ore
Iron ore sales had fallen from 4.7 MnT in
Jan’13 to 2.3 MnT in Feb’14 as major
buyers as buying was good in Jan ’14.
Therefore, volumes came down in Feb ‘14
JSW was the biggest buyer and
purchased 1.1 MnT Iron ore
NMDC sold 1.2 MnT Iron ore and other
mines sold 1.4 MnT
KARNATAKA
GOA
1.6 MnT Iron ore sold in e-auctions at Goa
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Mines Bid Qty Alloted Qty
NMDC 1,248,000 1,072,000
Other Mines & Stock Yards 1,486,000 1,418,000
Total 2,734,000 2,490,000
Qty in MT Source: SteelMint
Karnataka Iron Ore E-auction in Feb'14
Material type Bid Qty Alloted Qty
Fines 828,000
672,000
Lumps 420,000 400,000
Qty in MT Source: SteelMint
NMDC's Donimalai & Kumarswamy Mines
Buyers Material Type Quan�ty W.A. Grade W.A. Prices
Sudar Industries Fines 2,84,951 53 1,437
Shree Durga MiningFines 2,37,457 55 1,708
Lumps 13,851
57 2,035
Fomento ResourcesFines 1,22,705 55 1,886
Lumps 38,664
55 1,661
V M Salgaocar And Brother Fines 1,51,785 51 1,298
Bhavani Minerals Fines 1,00,937 48 874
Bagadiya Brothers Private Fines 65,000
55 1,855
Agrawal Minerals Goa Fines 23,623
58 2,335
Sesa Sterlite Fines 16,058
58 2,316
Sri Santhipriya Minerals Fines 9,776
52 1,380
Shraddha Ispat Fines 9,138
57 1,970
Royalline ResourcesFines 2,19,366 51 1,611
Lumps 19,164
54 2,102
Sesa SterliteFines 60,487
53 1,525
Lumps 7,654
55 1,696
Bagadiya BrothersLumps 23,057
54 1,815
Fines 44,779
55 1,803
Shree Durga MiningLumps 44,331
55 2,146
Fines 10,000 52 1,600
Fomento Fines 50,000 57 2,164
Agrawal Minerals Fines 30,000 54 1,817
Kineta Global Fines 20,000 53 1,620
Sudar Industries Fines 6,531 55 1,619
Total 1,609,314
W.A.(Weighted Average)
Qty in MT | Prices in INR/MT
E-auc�on 1 on 17 Feb & E-auc�on 2 on 05 Mar 14
1.6 MnT Iron Ore Purchased in Goa E-auctions
2.5 MnT Iron Ore sold through e-auctions in Feb’14
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Iron ore export from India up by 8.3% M-o-M in Feb ‘14
Source: SteelMint
Shipper Paradip Haldia Vizag Grand Total
Rungta Mines 180,000
80,000
35,000
295,000
Mmtc - - 288,630
288,630
Kashvi Power 110,500
- - 110,500
Kalinga Allieds 109,000
- - 109,000
Altrade 68,650
- - 68,650
Sm Niryat 56,900
- - 56,900
Global+Shark Mines 55,000
- - 55,000
Bagadiya Brothers 42,900
- - 42,900
Aloha Minerals - - 38,000
38,000
Samelaswari 24,000
- - 24,000
Chamong Tea - 20,000 - 20,000
Grand Total 646,950 100,000 361,630 1,108,580
Provisional Data Source: SteelMintQty in MT
Iron Ore Export from various Indian Ports in Feb'14
Route Vessel TypeFreight
(USD/MT)3 Months
(Dec)6 Months
(Sep)
India East Coast - China Supramax 15.0 16.0 12.0
Brazil- China Capesize 26.3 26.1 24.0
South Africa -China Panamax 20.4 20.7 18.9
Vessel Freight as on 10 Mar, 2014 with Previous Comparisons (Week 1)
IRON PELLET After government imposed 5% duty on Iron Pellet export from India, no exports had took place in Feb’14. Only
52,000 MT Pellets was exported by Jindal Steel to its DRI plant in Oman.
India exported 1.1 MnT Iron ore in Feb'14
Rungta Mines exported highest quantity of Iron ore at 180,000 MT
Iron ore export from Paradip port increased by 29% M-o-M in Feb’14 to about 646,950 MT
Exports went up because of increase in re-stocking after China Lunar New Year Holiday.
Prices went up by INR 1,000/MT owing to increase in finished steel
demand
20,600
20,400
20,150
20,200
20,300 21,300
19,000
20,000
21,000
22,000
Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14
Bas
ic P
rice
s in
IN
R/M
T
Monthly Average Prices of Sponge Iron in Raipur
Source: SteelMint
Prices fall sharply owing
decrease in steel demand & increase in stock posi�on at ports
134 133
136 136
129
121
115
120
125
130
135
140
Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14
Pri
ces
in U
SD
/MT
Monthly Average Prices of 63.5/63 Iron ore Fines, CNF China
Source: SteelMint
KIOCL‘s Pellet prices for Mar’14 are standing at INR 8,000/MT (Ex-works
Mangalore)
JSW Steel bought around 2.5 MnT high grade Iron ore from Odisha during Apr’13-
Jan’14 i.e over 1 MnT from Rungta mines, 0.6 MnT from Serajuddin Mines, 0.32 MnT
from Essel Mining and remaining from other miners
According to a senior official of the directorate of mines, 57 MnT Iron ore
dispatched from Odisha during Apr’13-Jan’14, which was 49 MnT during the same
period in last fiscal.
Seema GoenkaAnalyst
Email: [email protected]
Mob: +91 9575100530
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
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March
2014 Kolkata:
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South-West Block
Kolkata (W.B) - 700 046, India
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