Indian Iron pellet export experiences a good time in past 2 months, recording the growth of 110% M-o-M, with main importer country as China.
Although the China Iron ore market is going through a passive phase, there is a good call for Indian Iron ore.
“There is a demand for Indian Iron ore from China, but domestic market is not able to cater it ” said the Indian merchant exporter.
The reason to fail in catering demands, is the low production of Iron ore in Odisha because of extended monsoons.
“The current price for 60-61% Fe content grade of Iron ore was around INR 4100/MT CFR at Vizag Port”, he further added.
The current prices offered here in India for 63.5/63 Fe Iron ore is USD 136 – 137/MT CFR China.
Due to deficiency in domestic Iron ore production, the Iron Pellet producers are gaining advantage. This can easily be canvassed, that Iron Pellet exports are picking up from last few months, witnessing important export deals which is concluded by major Pellet plants like ESSAR, JSPL, Adhunik, and Ardent in recent days.
The Iron ore production fell by 14% Y-o-Y after the mining ban in Goa. From the total 143 MnT Iron Ore production in India about 18 MnT was contributed by Goa in FY13.
Although the government has given green signal to Goa Iron ore e-auction, this would be too early to comment on its role for this demand call from China.
As the committee has currently being formed and things are in process, he does not find any export deals taking place for this fiscal year.
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