NMDC, India’s largest iron ore producer and exporter, is to export two shipments of high grade iron ore to South Korean or Japanese mills under LTA. MMTC, India’s leading trading house, will export iron ore on behalf of NMDC.
One vessel named “Cape Sophia” carrying 70,000 MT high grade ore is at berth since 05 Mar’16. Another vessel named “Venus History” carrying 77,000 MT ore is expected to arrive Vizag Port on 12 Mar’16.
The price methodology followed for exports will be on the basis of quarterly average price index. According to sources, the export shipments made in Q4 FY16 will be -Baila lumps at USD 55.2/MT FOB, India and Baila fines at USD 48.45/MT, FoB India.
By far in FY16 (till Feb’16), NMDC had exported 0.89 MnT high grade ore to South Korea and Japan. Out of the total, 0.46 MnT had been exported to South Korea and 0.43 MnT to Japan.
In Mar’15, NMDC got approval for renewal of long term trade agreement for supplying upto 16.5 MnT of iron ore to Korea and Japan for three years i.e till Mar’18. The quantities covered under the agreement will be in the range of 3.8-5.5 MnT per year and will be supplied from NMDC’s Bailadila mines.
In addition, to boost exports, Indian govt. had reduced the export duty to 10% for high grade export shipments made under long term trade agreement by NMDC.
NMDC iron ore export shipments in FY16 (till Feb’16)
| Date | Vessel Name | Quantity (MT) | Destination Country |
| 19 Nov’15 | Vishva Uday | 77,000 | South Korea |
| 01 Dec’15 | Sea Neptune | 77,000 | South Korea |
| 08 Dec’15 | Shi Dai I | 74,700 | South Korea |
| 16 Dec’15 | Ocean Happy | 78,000 | Japan |
| 22 Dec’15 | Sitc Hengshan | 70,000 | Japan |
| 01 Jan’16 | Sea Hope | 79,460 | South Korea |
| 09 Jan’16 | Vassos | 75,000 | Japan |
| 12 Jan’16 | Ikan Bagat | 70,000 | Japan |
| 22 Jan’16 | Ocean Ruby | 70,000 | Japan |
| 01 Feb’16 | Dl Adonis | 77,000 | South Korea |
| 16 Feb’16 | Jag Arya | 70,000 | Japan |
| 21 Feb’16 | Ningo Invitation | 77,000 | South Korea |
Quantity in MT
Source: SteelMint Stats, Customs
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