Indian iron ore export decreased sharply by 53% in Apr’18 to 1.22 MnT against 2.63 MnT in Mar’18. On yearly basis, the exports have witnessed a decline of 60% as against 3.04 MnT in Apr’17.
Why have Indian iron ore export volumes fallen in Apr’18 ?
1. Imposed mining ban operations in Goa – The declining exports from Goan miners owing to shutdown of mining operations at 88 mining lease post 15th Mar’18 resulted in fall in export volumes. The miners were stopped to transport the extracted ore mined before 15th Mar’18 but later on 04 Apr’18, SC allowed miners to utilize the material so extracted before 16th Mar’18 for export and captive purposes.
2. Less demand for low grade ore in China – Increase in demand for high grade ore by China has reduced Indian export volumes. China’s imports from India fell 42% M-o-M. Declining demand for low grade ore, amidst strict environmental regulations in China resulted in reducing imports from India, and enhancing imports from Australia and Brazil.
3. No NMDC exports owing to LTA getting expired – Movement for exports declined to nil as LTA with Japan & South Korea expired on 31 Mar’18. Later on 25th Apr’18, Indian govt renewed long term trade agreement for supply of iron ore to South Korea & Japan through MMTC for a period of 5 years ending 31 Mar’22.
Vedanta’s iron ore exports declined 47% M-o-M
VM Salgaonkar marked the largest exporter of iron ore from India in Apr’18 at 0.52 Mn, up by thrice M-o-M as against 0.17 MnT in Mar’18. Vedanta stood the second largest exporter at 0.35 MnT, down 47% on monthly basis compared to 0.66 MnT in Mar’18.
Exports from Vedanta stood lower as against previous month due to order issued by Supreme Court of India dated 07 Feb’18, directing mining operations in Goa to stop with effect from 16 Mar’18. Vedanta exported 4.03 MnT in FY’18 compared to 7.32 MnT in FY’17.
Other major exporters in Apr’18 were Infrastil Global Impex at 0.12 MnT(down 62% M-o-M), followed by Chowgule and Company at 0.09 MnT (up 17%) and Rungta Mines at 0.06 MnT (down 82% ).
Indian iron ore exports to China fall by 42%
China stood the largest importer contributing 96% of total export share in Apr’18. China imported 1.18 MnT in Apr’18, down by 42% as against 2.03 MnT in Mar’18. Japan stood the second largest importer, with 0.04 MnT (4% of total exports share), down 90% M-o-M as against 0.44 MnT in Mar’18.
Iron ore exports from Mormugao ports down 40% in Apr’18
In Apr’18, Mormugao port accounted for largest share of exports with 95% share at 1.16 MnT, down 40% on monthly basis. The remaining quantity of 0.06 MnT was exported from Dharma port , up 7% on monthly basis.
Leave a Reply