According to railways data maintained with SteelMint, India’s largest Iron ore miner – NMDC has resumed iron ore rake movement to Vizag port for exports after a gap of five months, as the last movement was observed in Mar’18.
NMDC’s LTA (Long term agreement) to export iron ore had expired owing to which the miner recorded nil exports for a period of five months from Apr’18 to Aug’18 and has now resumed exports.
On 25th April’18, NMDC received approval for supply of iron to Japan and South Korea for a period of three years i.e from Apr’18 to 31 Mar 2021. However, there were no updates regarding the export duty structure. The quantity of iron ore exported to Japanese steel mills will be in the range of 3-4.3 MnT pa and that to POSCO, South Korea will be 0.8-1.2 MnT pa. The range of quantity of iron ore to be exported under LTA per annum shall be 3.80-5.50 MnT pa of both NMDC and non-NMDC origin iron ore with quantitative ceilings for export of Bailadila Lumps at 1.81 MnT pa and Bailadila Fines at 2.71 MnT.
Later, on 11th Jul’18 Indian government renewed export duty unchanged at 10% for iron ore exported from NMDC to Japanese and Korean mills under Long Term Trade Agreement (LTA).
According to customs data maintained with SteelMint, NMDC’s iron ore exports in FY’18 were recorded at 2.59 MnT, down marginally against 2.63 MnT in FY’17. Indian iron ore exports stood at 15.6 MnT in FY18.
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