Iron ore exports from India remained nil in Q2 FY16. With resumption of mining operations in Goa, exports are likely to move up.
Q2 FY16 did not notice any shipment for iron ore export from India, unlike Q1 FY16, where Essel Mining exported 39,300 MT iron ore to China. Iron ore exports stood at 0.86 MnT in Q2 FY15.
Central govt. had approved NMDC’s long term trade agreement (LTA) for Indian high grade iron ore exports to South Korea & Japan on 24th June’15. But the exports have not yet started as the terms & conditions are yet to be finalized.
Iron ore exports from Goa to pick up in this quarter
With resumption of mining operations in Goa, it seems that exports will pick up in this quarter. Iron ore miners in Goa are optimistic about exporting low grade iron ore to China inspite of declining global iron ore prices. Goa produces low grade ore which is exported to China. Time period from October-May is considered to be suitable for exports from Goa.Indian iron ore fines (Fe 58%) is currently at USD 46/MT, CFR China.
Mining giant, Vedanta is all set to make its 1st iron ore export shipment in this month. To begin with, the company will export auctioned cargoes to China in Oct’15.
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