- Iron Ore exports from India move up in 2nd Qtr
- Iron Ore exports likely to be 13-14 MnT in 2013-2014
- Exports from Goa unlikely to start this year
Iron Ore exports from India move up in 2nd Qtr
Iron ore exports from India rise by 50% in the second quarter (July-Sep) of FY14 in comparison to first quarter of this fiscal. Exports of Iron ore in Q1 (April-June) FY14 were around 3.3 MnT which have gone up to around 5 MnT in the second quarter. This rise in exports of Iron ore is quite surprising for India as export duty and freight charges are quite high amidst ban on mining operations in Goa. Moreover from past few years Iron ore exports were in a downward trend owing to curb mining operations in Karnataka and Goa.
Rapid growth in export of the raw material was majorly because of weaker rupee against dollar that reached its all-time low at INR 69/USD during August'13. Spot Iron ore prices in China remained quite good in the international market providing beneficial margin to the exporters and resulting in increased exports of the material.
Major exports were from Paradip Port (Odisha).In addition, Rungta Mines being the highest quantity exporter of around 1.2 MnT. It was followed by MMTC which exported around 0.67 MnT and Bagadiya Brothers with 0.4 MnT exports of the raw material.
Exports expected to come down in Qtr-3
However, according to the exporters the exports in Q3 of FY14 will not be much fruitful for them as the rupee is gaining back its strength against dollar. The Chinese Spot Iron ore prices have corrected by USD 5-6/MT. The railways freight charges for exports have gone up by INR 500-600 presently owing to the 'Busy Season Charge' imposed by Indian railway under dynamic pricing policy.
Iron ore exports from India likely to come down to 13-14 MnT in 2013-2014
India was the third largest Iron ore exporters in the world but is losing its position because of the ban in mining in its major locations such as Karnataka and Goa owing to illegal mining operations. Traders though, expect to export around 13-14 MnT Iron ore in FY14 from India.
Falling Iron ore exports from India
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