Starting FY17, Indian iron ore exports gained momentum. But, due to ongoing monsoon season, iron ore exports fall by 64% in June’16.
As per customs data maintained by SteelMint, total iron ore exports registered at 0.74 MnT in June’16 as compared to 2.1 MnT in May’16.
In the first 3 months of FY17, total 5.11 MnT iron ore has been exported from India across the globe. China, Japan, and South Korea are the major export destination for Indian iron ore exports.
Global iron ore prices moving up; beneficial for Indian iron exporters
Global iron ore prices are on the higher node. Prices are up by USD 5-6/MT in a month time. Prices remained at the level of USD 50-51/MT for Fe 62% Australian fines in May’16, which is now hovering in the range of USD 55-56/MT, CFFR China.
On similar lines, Indian iron ore export offers for Fe 57/58% fines are currently hovering in the range of USD 32-33/MT, FoB India. In addition, Odisha-based major miners also are turned active to export low-grade iron ore. Rungta mines, Bagadiya Brothers are actively participating in iron ore exports.
However, SteelMint anticipates the ex-mines realization for Odisha-based miners for exports would come around 600-650/MT, FoB East Coast.
Japan- the second largest export destination for Indian iron ore exports
After China, Japan has become a second largest export destination for Indian iron ore exports.
However, in FY17 (till June’16) exports to China remained at 4 MnT, Japan at 0.78 MnT and South Korea at 0.31 MnT.
In FY16 and first 3 months of FY17, total 15.6 MnT iron ore has been exported to Japan from India. One of the major factor for the increase in exports to Japan is LTA of NMDC with Japanese and South Korean mills. Under LTA, the miner has to export around 3.8 to 5.5 MnT iron ore every year.
Party-wise iron ore exports from India in June’16
| Shipper | May’16 | Jun’16 |
| Vedanta | 902,400 | 154,000 |
| Mmtc | 214,000 | 227,000 |
| Fomento Resources | 318,250 | – |
| Bagadiya Brothers | 248,500 | – |
| Vm Salgaonkar | 123,550 | – |
| Royal Line Resources | 105,600 | 59,500 |
| Samruddha | 55,000 | – |
| Chowgule And Company | 56,400 | – |
| Rungta Mines | – | 141,850 |
| Kalinga Export | 56,300 | – |
| Yazdani International Pvt Ltd | 77,400 | – |
| Kk Resources | – | 72,000 |
| Sainath,Gm Iron,Bagadiya Brothers | – | – |
| G N Agarwal | – | – |
| Ghanshayam Mishra & Sons | – | 50,000 |
| Rajnand Pur & Bagadiya Brothers | – | 38,000 |
| Independent Minerals | 17,000 | – |
| Total | 2,174,400 | 742,350 |
Qty in MT
Source: SteelMint Stats, Customs
Provisional data
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