Indian Iron Ore Exports Move Up in Oct’15

India exported 255,000 MT iron ore to China in Oct’15.

India failed to notice any iron ore export movement in Q2 FY16. Unlike last few months, the month of Oct’15 witnessed three iron ore export shipments from India. 255,000 MT iron ore was exported from India last month.

All the export shipments were made to China. Out of the three shipments, two shipments (total of 176,000 MT) were of Vedanta, comprising of low grade Goan iron ore.

Vedanta was the first company to resume exports from Goa after it restarted its mining operations after the 3 years due to mining ban imposed in the state. Another vessel of Vedanta under the same export contract containing 88,000 MT iron ore is likely to be exported in 1st week of Nov’15.

Bagadiya Brothers exported 79,000 MT Odisha low grade iron ore to China through Dhamra Port.

Indian iron ore exports in Oct’15

Qty in MT
Provisional data
Source: SteelMint Stats, Customs

Last month, Indian govt. reduced iron ore export duty on iron ore exported by NMDC to South Korea & Japan to 10%. Post reduction in export duty, the miner had resumed iron ore movement for exports. It moved about 10 rakes i.e. 38,500 MT (each rake carrying approx 3,850 MT) iron ore to Vizag port.

Iron ore exports from Goa have picked up since Oct’15. Goan iron ore exports might further strengthen in Nov’15 as some miners in Goa have been heard talking to Chinese steel mills for finalizing their export contracts. Though, falling global iron ore prices continue to remain a matter of concern. Prices of Indian iron ore fines (Fe 57%) have plunged to USD 38/MT, CNF China.