November shipments from India's
largest iron ore exporting port, Mormugao in Goa state, recovered from last month
as firmer prices made shipments feasible from the western state with lower
freight but the export still remains down by 6% at 3.19 million tonnes on
year-on-year basis.
“Feasibility is there from Goa
port there is good demand for low grade in China and Orissa ores are
unavailable,” said Dhruv Goel, managing director at SteelMint.
Freight charges from Orissa to
any other eastern port costs an average of Rs 2,700-3,000 ($53-58) per tonne,
compared to Goa's Rs 1,200, making Goan cargoes more viable, traders said.
Chinese steel mills began
replenishing their inventories after spot iron ore prices fell to a 22-month
low below $117 a tonne in late October. Prices have since gained about 10% in
November.
“Demand is pretty good from China
since last week,” said Goel, adding it is not difficult to sell readily
available cargoes.
Goa is the biggest shipper of the
steel making ingredient from India, normally the world's third-largest iron ore
exporter. Exports of the steel-making ingredient fell 13.9% to 17.9 million
tonnes in the first eight months of the fiscal year, which started in April.
A report on allegations of
illegal mining in Goa is expected to be submitted to the federal mines ministry
this month. Justice M.B. Shah, head of the panel, had said it will be very
difficult to control illegal mining unless exports are controlled.
Leave a Reply