Indian Government today approved NMDC’s long term trade agreement for supply of iron ore to South Korea & Japan.
The Indian government has made a decision to renew long-term agreement for Indian high grade iron ore exports to Japan and South Korea for a period of 3 years (April 2015- Mar 2018).
Under new long-term agreement, about 3.8 to 5.5 million mt of Indian iron ore mined by NMDC Limited will be shipped to these countries by government-owned trading house MMTC Limited.
These agreements will help continue this relationship and strengthen Indo-Japanese collaboration in several areas of mutual interest, including technology transfer, joint venture, investment, etc. The agreement will also help utilize surplus production of iron ore currently available in India.
NMDC was the largest Iron ore exporter in FY15 and it exported 2.39 MnT via Vizag port. In first two months of FY16, iron ore exports from India remained nil as the renewal of LTA was not approved by the government. With NMDC receiving approval, iron ore exports from India might gear up.
NMDC Iron Ore Export Prices
| Period | Export Prices USD/MT, FoB Vizag Port | |
| Baila Lump (Fe 65%) | Baila Fines (Fe 64%) | |
| FY 14 | ||
| Q1: Apr.’13 – Jun’13 | 154.78 | 142.47 |
| Q2: Jul’13 – Sep.’13 | 142.16 | 130.84 |
| Q3: Oct.’13 – Dec.’13 | 133.34 | 121.9 |
| Q4: Jan’14 – Mar’14 | 140.77 | 126.86 |
| FY 15 | ||
| Q1: Apr.’14 – Jun’14 | 136.96 | 122.43 |
| Q2: Jul’14 – Sep.’14 | 111.96 | 103.16 |
| Q3: Oct.’14 – Dec.’14 | 96.75 | 88.06 |
| Q4 : Jan’ 15- Mar’ 15 | 88.05 | 72.29 |
Provisinal data
Source: SteelMint
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