India exported 0.49 MnT Iron ore in Mar’15, which fell drastically & stood nil in Apr’15.
NMDC exports on behalf of MMTC and has been a consistent Iron ore exporter to countries like South Korea & Japan. But, its Long term Trade Agreements (LTAs) for supply of high grade Iron ore to these countries ended on 31 Mar, 2015. As a result of which, its exports remained nil. Proposal for renewal of LTAs for 3 years w.e.f. 01 Apr, 2015 was tabled in the Parliament on 29 Apr, 2015.
Spot Iron ore prices sank to 10 years low in Apr’15. Prices fell to USD 47/MT, CFR China for Fe 62% fines, which made exports un-viable. World’s largest Iron ore miners namely BHP Billiton, Rio Tinto & Vale created a supply glut in China coupled with other factors like subdued steel demand in China and infrastructure sector not gearing up.
Iron ore exports from India fell by 65% Y-o-Y from 14.5 MnT to 4.8 MnT in FY15.
Spot Iron Ore Prices in China move up
Monthly average Spot Iron ore prices in China have moved up by USD 10/MT M-o-M in May’15 (till 13 May, 2015). Price for Fe 62% fines is at USD 62/MT, CNF China. Uptrend in prices was noticed owing to improved buying from Chinese steel mills. Also, some of the major miners have planned to delay their expansion plans, which might support global Iron ore prices.
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