The sudden rise in global iron ore prices has turned Indian iron ore exporters active in the export market. Global iron ore prices are at 3-months high. Currently, prices are at USD 61/MT, CFR China on 02 Aug’16.
Indian east coast based iron ore exporters namely Rungta Mines, Essel Mining, GS Mishra and few more exporters have started moving decent quantities of low-grade iron ore to ports. Indian exporters turned active due to healthy export margins.
Current offers for Fe 57/58% low-grade iron ore are hovering in the USD 35-36/MT,FoB India. Ex-mines realization for low-grade iron ore exports from Odisha will approximately come around INR 700-760/MT. But, currently material is available at INR 400-500/MT (ex-mines) including royalty.
In Jul’16, Rungta mines moved around 24 rakes to Dhamra Port and 26 rakes to Paradip Port for exports. Bagadiya Brothers moved 3 rakes to Dhamra Port. In addition, Essel Mining resumes iron ore movement (around 9 rakes) to Paradip Port in the month of Jul’16.
Cost dynamics of low-grade iron ore exports from Odisha
| Particular | Prices | |
| In INR | In USD | |
| FoB India (Fe 57%) fines | 2400 | 36 |
| Hedging cost | 140 | 2 |
| Moisture@10% | 234 | 3.5 |
| Port Handling Charges | 350 | 5.2 |
| Freight from Mines to Port | 650 | 9.7 |
| Local Transport charges (Mines to railway siding) | 350 | 5.2 |
| Miscellaneous & other charges | 200 | 2.9 |
| Ex-mines realization (including royalty, DMF& NMET) | 756 | 11.5 |
Exchange rate: 1 USD=66.7 INR
Source: SteelMint Research
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