Despite higher global iron ore prices most of the Indian iron ore exporters resist themselves from export.
Ongoing monsoon in east coast has affected iron ore dispatches. Also, there has been a fall of 6% in iron ore exports during August.
Apparently, not many iron ore exporters are active in the Indian market. Majority of Indian iron ore exporters are waiting for the monsoon to get over so that export can be resumed.
Alongside, iron ore exports from West India completely remained nil. In fact, the Goan government has halted iron ore mining in Goa due to heavy rainfall in order to ensure public safety. It is likely that exports from Goa will start from next month onwards.
In talks with one of the market participants, SteelMint heard that low-grade ore in Odisha is currently available at INR 600/MT /(ex-mines) including royalty. Road freight charges to Paradip Port are INR 1,100-1,150/MT. Rail freight to Dhamra Port is INR 650/MT and Paradip Port is INR 700/MT.
Current offers for Fe 57/58% low-grade iron ore are hovering in the range of 34-36/MT FoB India. Ex-mines realization for low-grade iron ore from Odisha will be around INR 700-750 /MT. But, the material is available at around INR 600/MT (ex-mines) including royalty.
In Aug’16, Odisha-based Rungta Mines turned out to be the largest exporter of iron ore from Indian east coast. The miner moved 23 rakes to Dhamra Port and 21 rakes to Paradip Port against 24 rakes to Paradip and 27 rakes to Dhamra in the month of Jul’16. Rungta Mines exports most of the material to China.
On the other hand, other major exporter named Bagadiya Brothers moved 25 rakes in the month of Aug’16 but its exports remained nil.
Total 5 MnT low-grade iron ore has already been shipped during FY 17 (till August) . SteelMint estimates Indian iron ore exports to be around 10-12 MnT during the current financial year.
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