Cost Dynamics for Export of Indian Iron Ore Fines in Jul’16

Odisha-based miners are actively exporting low-grade iron ore since last month. Iron ore exports from east coast region are gaining momentum. Rungta mines are actively exporting low-grade ore to China.

Whereas exporters from another region namely west coast of India still kept themselves away from exporting due to ongoing monsoon season.

In Jul’16 (till 21 Jul’16), total 19 rakes had been moved by Rungta Mines to Dhamra Port whereas total 14 rakes had been moved to Paradip Port.

As per SteelMint analysis, considering last export shipment from Odisha which was concluded at USD 32/MT FoB India, ex-mines realization for iron ore fines (Fe 57/58%) to Odisha miners will approximately come around INR 550-600/MT. The booking at this price was done around 1 month back when global iron ore prices for Fe 62% Australian fines were at USD 54/MT, CFR China.

However, current export offers for Fe 57/58% Indian low-grade fines are at USD 33-34/MT, FoB India. Currently, global iron ore prices  are hovering at USD 56/MT, CFR China. So, for the next month booking, export prices for low-grade fines will come around USD 33-34/MT, FoB India.

Upcoming Odisha-based miner’s export shipments

Apparently, there are three more shipments of Rungta mines lined for exports from Paradip Port out of which, one of 55,000 MT is at berth, one of 75,000 MT iron ore is at anchorage and one for 70,000 MT iron ore is expected. All the three shipments are expected to reach China.

In addition, one more vessel carrying around 55,000 MT low-grade iron ore fines of Kai International is at anchorage at Paradip Port.

Cost dynamics of  low-grade iron ore exports from Odisha

Exchange rate: 1 USD=67.2 INR
Source: SteelMint Research