- Indian iron ore production moves down over mining restrictions.
- Imports unlikely to increase significantly.
- Falling Rupee will benefit exports of Iron Pellets from India
According to provision data released by Indian Ministry of Mines for Iron ore production, it was noticed that production fell 20% in April-June 2013 as compared to same period in preceding year (i.e April-June 2012). Iron ore production in India has been falling consistently since last few years over mining ban in Karnataka and Goa.
According to the figures released by the ministry, total production in April – June 2013 stood at 36.3 million tonnes as compared to 45.4 million tonnes in April – June 2012. Total production in the financial year 2012-2013 noted at around 143 million tonnes as Odisha remained the highest producer with around 62 million tonnes followed by Chhattisgarh.
According to industry experts, total Indian iron ore production in FY 2013-2014 is expected to land at around 110-115 million tonnes against 143 million tonnes in FY 2012-2013, mainly due to mining ban in Goa. However, experts ruled out significant increase in imports of iron ore or pellets, primarily due to falling Rupee against USD,which had crossed 65 levels and secondly due to increasing availability of pellet for merchant sales.
Industry veterans also believe that pellet exports from India will rise as falling Rupee has fetched better realization for manufacturers.
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