Let’s see how will be Indian iron ore statistics in FY16(E).
Indian iron ore production in FY16(E)
As per SteelMint analysis, iron ore output may surge 20% in FY16. The country’s iron ore output is likely to be around 155 MnT in FY16. Due to mining ban imposed by the Indian govt. upon illegal mining, production figures were badly hurted. But, as many Indian iron ore miners had resumed mining operations in FY16, iron ore production is expected to touch to a level of 155 MnT by the end of FY16(E).
The largest state producing iron ore Odisha is pegged at 70 MnT this fiscal, up from 47 MT that the state had achieved in FY15. Karnataka’s production may increase by around 14% may touch 25 MnT , which was 21 MnT in FY16(E). Production from Chhattisgarh is likely to drop down to 26 MnT which was 31 MnT in FY15, as the largest iron ore producer NMDC’s production had been significantly dropped down. Other states like, Jharkhand is likely to produce 23 MnT in FY16. In addition, owing to resumption of fresh mining in Goa, iron ore production from Goa may contribute to 5 MnT in FY16(E).
Indian iron ore imports in FY16(E)
In FY16, India had imported 5.5 MnT iron ore (till 22 Mar’16) which was 15.1 MnT in FY15.
In FY15, due to mining ban imposed by Indian govt. there was lack of sufficient availability of raw material in India turning Indian steelmakers to source the material via imports. But, starting FY16, with the amendment in MMDR Act, and resumption of mining operations in India, iron ore imports significantly dropped down.
As per the customs data maintained by SteelMint, there are six iron ore import shipments (till 30 Mar’16) expected to arrive in Mar’16. Out of this, major share was of JSW Steel i.e. 0.62 MnT.
Thus, Indian iron ore imports is expected to be around 6 MnT in this fiscal contrary to 15.1 MnT in previous fiscal.
Indian iron ore exports in FY16(E)
India’s being the 3rd largest iron ore exporter in FY10 had substantially reduced iron ore exports over past few years due to inadequate availability of material in domestic market. Prime reason behind lesser exports were mining ban imposed by state government, high iron ore export duty and distance based charges.
As per SteelMint analysis, iron ore exports is likely to touch to a mark of around 5.7 MnT in FY16(E) and to a mark of 10 MnT in FY17(E). Exports were at 4.7 MnT in FY15. Iron ore exports gears up in FY16 as there was renewal of NMDC’s LTA with Japanese and Korean mills to export around 3.8 MnT to 5.5 MnT for a period of three years. In addition, Indian govt’s recent move to abolish export duty on iron ore below Fe 58% (fines & lumps) will encourage more exports from India.
On the other side, exports from Goa also resumed in FY16. As of now, out of the total quantity, around 3.4 MnT iron ore (around 62%) till 21 Mar’16 exports had been done from Goa. Goa mainly exports low grade ore to China.
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