Indian exporter sold Fe 63/62 Iron ore fines at around USD 62/MT, CIF China.
An Indian exporter is shipping about 22,000 MT Iron ore fines to China from Paradip Port located in Eastern region of India. This may come as a surprise for many exporters as exports are not viable from India after Seaborne Iron ore prices slumped to 6 years low level.
But, matter of fact is, exporters are forced to ship cargoes lying at Paradip Port as plot allotted to them is expiring in March and thereafter, it will come for auction. Moreover, exporters are not willing to hold plots at Paradip Port, when they do not see future for raw material export.
“It is not viable to pay huge amount for plots at Paradip Port, when there is no business. Whatever stock we are left with, we have to clear it by March,” said an Iron ore exporter, who holds a plot at Paradip Port.
Paradip used to be the largest port for Iron ore exports. 5.59 MnT Iron ore has been exported from the port in FY14, which has fallen to 0.7 MnT in FY15 (till Jan’15). But, constant decline in spot Iron ore prices have hit Iron ore export hard. Monthly average spot Iron ore fines prices for Fe 62% have fallen from USD 114/MT, CNF China in Apr’14 to USD 62/MT, CNF China in Feb’15 (till 17 Feb’15).
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