Indian Iron Ore Exports reduce drastically by 44% in Q1 FY15

Indian Iron ore export has declined in Q1 FY15 owing to fall in global Iron ore prices and appreciating INR against USD.

India, which was the 3^rd largest Iron ore exporter till FY10, has lost its position after mining ban imposed by the Supreme Court in major Iron ore producing states. The total Iron ore exports from India in Q1 FY15 stood at 1.94 MnT.

Iron ore exports from India reduced significantly by 44% from 3.40 MnT in Q1 FY14 to 1.94 MnT in Q1 FY15. Major export of Iron ore took place through Vizag port (0.76 MnT).

Qty in MT
Source: SteelMint Research

“Imposition of mining embargo in Odisha, nil exports from Goa, non issuance of permits and unviable China prices are the main reasons behind reduced Iron ore exports from major Indian ports.

Exporters are anticipating some relaxation in the export duty & clarity in policies from the forthcoming budget. With some relaxation on export duty, pick up in the China market and other concessions from ports will boost up the Indian Iron ore exports,” said Mr. PK Chaki, Honorary Secretary of Iron ore Exporters’ Association.  

In Jun’14, a handful of Iron ore exports took place owing to decrease in spot Iron ore fines prices, appreciating INR against USD and subdued Iron ore demand from China.

The stockpile at Chinese major ports have declined from 113.5 MnT (in the mid of Jun, 2014) to 112.2 MnT (in the end of Jun, 2014). With China manufacturing PMI index rebounding back to 50.8 in June, 2014 hopefully Iron ore exports from India will gain momentum in the coming month.