India: Iron Ore Exports reduce to 0.8 MnT in Q2 FY15

Iron ore exports from India have fallen by 58% from 1.9 MnT (Q1 FY 15) to 0.8 MnT (Q2 FY15).

The prominent reasons for fall in exports are:

1. Spot Iron ore fines prices hit 5 years low mark and is still trading below USD 80/MT, CNF China (Fe 62%)
2. Decline in China’s manufacturing activities as HSBC’s China final Purchasing Managers Index (PMI) fell from 51.7 (Jul’14) to 51.1 (in Aug’14 & Sep’14)
3. Expensive plot rents, high freight charges and 30% export duty are other setbacks for Indian Iron ore exporters

NMDC, which exports about 10% of its Iron ore production to Japanese & Korean mills under long term agreements, remain the largest exporter in Q2 FY15 and exported 0.58 MnT; down by 11% against last quarter (0.65 MnT in Q1 FY15).