Indian government has kept export duty unchanged at 10% for iron ore exported from National Mineral Development Corporation (NMDC) to Japanese and Korean mills under Long Term Trade Agreement (LTA). The export duty shall not have effect on or after the 31 March 2021.
Link to the notification issued
Earlier this year on 25 Apr’18, the Union Cabinet approved the renewal of Long Term Agreements (LTAs) for supply of iron ore (lumps and fines) of grade Fe 64% to Japanese Steel Mills (JSMs) and POSCO, South Korea.
The range of quantity of iron ore to be exported under LTA per annum shall be 3.80 MnT per annum to 5.50 MnT per annum of both NMDC and non-NMDC origin iron ore with quantitative ceilings for export of Bailadila Lumps at 1.81 MnT per annum and Bailadila Fines at 2.71 MnT per annum.
Although Indian govt renewed LTA in Apr’18, but clarity on export duty was awaited owing to which no iron ore movement from exports was seen from NMDC in Q1 FY19 (Apr-Jun’18). With recent issued notification giving clarity on export duty, company is likely to resume exports.
According to company reports, NMDC registered best ever production and sales at 35.5 MnT and at 36.08 MnT respectively in FY’18. Out of 36.08 MnT iron ore sales reported in last fiscal, export sales were at 2.59 MnT.
According to customs data maintained with SteelMint, Indian iron ore exports summed up to 15.64 MnT in FY18. Vedanta remained the largest exporter at 4.04 MnT followed by NMDC and Fomento Resources. Japan and Korea remained 2nd and 3rd largest destinations after China.
Indian iron ore export dropped 61% Q-o-Q in Q1 FY’19 – Indian iron ore exports have recorded sharp decline in Q1 FY19, as per data maintained with SteelMint. The exports were recorded at 2.31 MnT, down 61% Q-o-Q as against Q4 FY’18 at 5.87 MnT. On yearly basis, the exports have depicted fall of 56% as against 5.21 MnT in Q1 FY’18. Reduced exports from Goa over imposed mining ban and nill exports from NMDC resulted in decline in quarterly Indian iron ore export volumes.
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