In a recent period a substantial increase has been observed in iron ore exports from Odisha Miners. Odisha is India’s largest iron ore producing state – The analysis of data maintained with SteelMint shows that India exported 20.94 MnT iron ore from Jan’16 till Jan’17.
From Jan’15-Dec’15 the total iron ore export from India were recorded at 3.32 MnT whereas it were 18.18 MnT for Jan’16-Dec’16 a significant increase of 448%.
Odisha’s two major Ports Paradip and Dharma have loaded 0.17 MnT iron ore for the CY 15 but 2.94 MnT iron ore for CY 16 which is 17 times more than the year earlier.
Goa Ports of Mormugao and Panaji have exported 1.49 MnT material for the CY 15 but 11.14 MnT iron ore for CY 16 which is 7 times more than the year earlier.
There are few key influencers for the increased amount of outgoing material
1. The large quantity is sitting at the mines against relatively low dispatches.
Odisha based merchant minors have produced 52.65 MnT iron ore in FY17 (till Dec’16). To the contrary, iron ore dispatches in the same period stood at 46 MnT, (excluding movement for exports).
2. The piling inventories to be cleared to achieve the Environmental Clearance limit set by the govt. before the financial year ends.
3. Lucrative global prices have also been one of the reasons for the increased export of iron ore. Global iron ore fines (Fe 62%) index has gone up to USD 93/MT, CFR up by USD 12/MT M-o-M.
4. Rake availability for exports is comparatively easier than for the domestic movement.
5. Aggressive bidding in Paradip port plot auctions – In view of increased iron ore & pellet exports, Paradip port plot auctions conducted on 16 Jan’17 witnessed aggressive participation from around 19 companies. Bid prices were quite higher against the previous e-auction. However the reason for the same was that the plot auction was backed by major Odisha based miners.
Looking at the ongoing activities it appears that it is not until March end we would see any decline in exports from Odisha miners.
Leave a Reply