Indian Iron Ore Exports fall by 56% M-o-M

Iron ore exports from India in Oct’14 fell by 56% from 252,500 MT in Sep’14 to 112,000 MT in Oct’14.

Iron ore exports have been consistently falling from India owing to lower realizations, higher freight cost and export duty. India, which used to be the 3rd largest Iron ore exporter in the world, has lost its position amid several mining restrictions by the government.

Iron ore exports have fallen by 56% in Oct ’14 against Sep’14. India’s total Iron ore export in FY14 stood at about 14.4 MnT against 18.2 MnT in FY13.

NMDC, which has long-term agreements with Japanese & Korean steel mills, remains the largest exporter and exported 0.07 MnT ore followed by Bagadiya Brothers (0.04 MnT). Merely, two shipments have taken place through Vizag port (68,000 MT) followed by Mormugao port (25,000 MT).

“There is nothing left for Iron ore exporters. Falling prices in China coupled with rising prices in the domestic market have made exports unviable. Few exports will take place from Goa, but that is subjective to global prices and Indian currency. Quite a lot of exporters have lost their money in this trade,” said an Indian exporter based in eastern region.

Goan government is conducting an e-auction for 1.8 MnT Iron ore on 06-07 Nov, 2014 which is priced on export parity basis. Exporters believe that response will be subdued due to lower global prices.

Iron Ore Exports from India in Oct’14

Qty in MT
Provisional data
Source: SteelMint Research, Customs

Global Iron Ore Prices may fall further

Spot Iron ore prices have declined to the lowest level in more than five years as China ordered few steel mills to reduce production, curbing demand in the world’s biggest user.

Global Iron ore prices have been forecasted to fall continuously, with expectations of slumping to as much as USD 70/MT, following fall to a new low this week.

Iron ore prices fell to around USD 76/MT on Wednesday, according to Index tracking of the northern China CFR Iron ore benchmark.