New export duty on low grade iron ore ( below 58%) w.e.f June 1.
Indian iron ore exporters have become active post government cut export duty on low grade iron ore (below 58%) to 10% from 30% w.e.f June 1.
Market participants highlighted some trades took place at INR 1,800-1,850 /MT delivered Vizag port for Fe 58/57 % fines.
“We have resumed our sourcing from domestic market. There is some improvement in spot iron ore prices in china. Also lower export duty will give some parity. ” said an exporter based in eastern region.
Exporters are expecting 55% Fe fines at around USD 24/MT FOB Haldia port, confirmed sources.
India, which used to be third largest exporter of iron ore , has lost its significance after government raise export duty to 30% in the year 2012.
Indian iron ore exports were recorded at 4.8 MnT in FY15, 14.5 MnT in FY14 , 18.1 Mnt in FY13 , 61.7 MnT in FY12 and 97.6 MnT in FY11.
No export was recorded in first two months of FY16.
Spot Iron Ore Prices
|
Grade |
FoB India | CNF China |
Export Duty |
| 63.5/63 | 51 | 63 | 30% |
| 63/62 | 50 | 62 | 30% |
| 61/60 | 44 | 56 | 30% |
| 59/58 | 40 | 52 | 30% |
| 56/55 | 25 | 37 | 10% |
Prices in USD/MT
Reference Prices
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