Indian Iron ore exporters maintain a wait and see stance on Iron ore export offers as existing export rate is higher by nearly USD 16-41/MT to realization.
Fe 62 Spot Chinese Iron ore Fines price has touched the lowest since mid Sep, 2012, now at USD 103/MT CFR China. Fe 58 Fines is in the range of USD 82-83/MT CFR China.
Director of an Iron ore exporting company which exports Iron ore from Paradip, Vizag and Haldia Port to China, remarks,
“We haven’t placed offers for Iron ore export as it is not viable at present on such low price point. Iron ore buyers have preferred to procure the material from Chinese Port as stock accumulation of Iron ore at Chinese Port are still tall.”
As per SteelMint statistics, the company exported around 55,000 MT & 35,000 MT Iron ore from Paradip & Vizag Port during Jul 2013-Mar 2014; about 21,000 MT was shipped from Haldia. In Apr’14, they exported almost 56,700 MT from Paradip port.
Cost of exporting 1 MT Iron ore from Barbil (Odisha) to Vizag Port is higher by nearly USD 16-50/MT
The total cost of exporting Iron ore from Barbil (Odisha) to Vizag Port via road transportation, is high by nearly INR 956/MT/USD 16/MT. While, Iron ore movement by railway rakes result in loss of almost INR 2,456/USD 41/MT.
|
Total Cost of Exporting 1 MT Iron Ore Fines from Barbil (Odisha) to Vizag Port |
||||
|
Particulars |
By Rail |
|
By Road |
|
|
|
INR/MT |
USD/MT |
INR/MT |
USD/MT |
|
Material cost |
1,200 |
20 |
1,200 |
20 |
|
Local Transport to railway siding |
500 |
8.3 |
– |
– |
|
Freight for exports (Barbil to Port) |
2,700 |
45 |
1,800 |
30 |
|
Port expenses/Stevedoring charges |
350 |
5.8 |
250 |
4.2 |
|
Miscellaneous expenses |
50 |
0.8 |
50 |
0.8 |
|
302 |
5 |
302 |
5 |
|
|
Export duty@30% on FoB value |
1,134 |
18.9 |
1,134 |
18.9 |
|
Total |
6,236 |
103.8 |
4,736 |
78.9 |
|
Existing FoB Value@USD 63 for Fe 58 Iron ore Fines |
3,780 |
63 |
3,780 |
63 |
|
Margins (loss) |
(-) 2,456 |
(-) 40.8 |
(-) 956 |
(-) 15.9 |
(INR = 6o against USD)
Source: SteelMint Research
www.events.steelmintgroup.com
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