NMDC, India’s largest iron ore producer and exporter, has started iron ore export from Bailadila mines since Nov’15.
Initiation of iron ore exports by the company was done on the basis of renewal of Long Term Agreement (LTA) to export high grade iron ore, mainly fines) to South Korean and Japanese steel mills.
There are total 6 shipments exported in the month of Dec’15. MMTC, major trading house in India, is exporting iron ore on behalf of NMDC.
Shipment Details in Dec’15
| Date | Vessel | Quantity | Load Port | Country | Status |
| 1 Dec’15 | Sea Neptune | 77,000 | Vizag | South Korea | Berth |
| 8 Dec’15 | Shi Dai I | 74,700 | South Korea | Berth | |
| 16 Dec’15 | Ocean Happy | 78,000 | Japan | Berth | |
| 22 Dec’15 | Sitc Hengshan | 70,000 | South Korea | Berth | |
| 30 Dec’15 | Sea Hope | 79,460 | South Korea | Expected |
Quantity in MT
Source: SteelMint Stats, Custom
As per sources, the pricing methodology followed by NMDC will be on the basis of quarterly average price index. Export price for all the shipments made to South Korea and Japan in Q3 FY16 will come around USD 51-52.6/MT, CFR.
To boost export, Indian government had also withdrawn export duty to support Indian exports. Government had reduced duty to 10% from 30% on high grade ore keeping in mind the NMDC’s LTA renewals.
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