India: Proposal for Renewal of LTA on Iron Ore Supply tabled in the Parliament

The proposal for renewal of Long-term Trade Agreements (LTAs) for supply of Iron ore to Japan & South-Korea was presented in the Parliament on 29 Apr, 2015.

NMDC, which has been exporting Iron ore to countries like South Korea & Japan through MMTC is all set to continue its Iron ore supply to these countries. The proposal for renewal of LTAs was tabled in the Parliament yesterday on 29 Apr, 2015.

“Indian government has long term trade agreements (LTAs) for supply of high grade Iron ore to counties like Japan & South Korea. The proposal for renewal of LTA for 3 years w.e.f 01 Apr, 2015 is under way.” – said Nirmala Sitharam, Commerce and Industry Minister

Negotiations on quantity & price will commence after approval of renewal of LTA’s. The export of iron ore is presently under open general license and are determined by availability and international market situations.- she added.

NMDC was the largest Iron ore exporter in FY15 and it exported 2.39 MnT via Vizag port. Iron ore prices in global market fell sharply by 35% in FY15 against FY14 owing to which the miner had incurred losses in its export shipments.

NMDC Iron Ore Exports in FY15

Qty in MnT
Export Prices in USD/MT, FoB Vizag Port
Provisional data
Source: SteelMint, Customs