Low-grade iron ore exports from Odisha pick up owing to rising global iron ore prices. Global iron ore prices have touched to a level of USD 61/MT due to which Indian iron ore exporters have turned active in the export market.
As we have reported earlier, Rungta Mines, Essel Mining, Bagadiya Brothers, Fortune Associates are already moving decent quantities of low-grade iron ore to ports. In addition, two more exporters namely Ujala Minerals and Chamong Tee have also started moving low-grade ore to ports for exports.
So far in Aug’16 (till 17 Aug’16), Rungta mines moved around 15 rakes to Dhamra Port and 10 rakes to Paradip Port. Bagadiya Brothers moved 12 rakes to Dhamra Port. Whereas other exporters like Essel Mining moved 3 rakes, Kai International moved 2 rakes from Paradip Port. However, in Jul’16, Rungta Mines moved 50 rakes from Paradip and Dhamra Port.
In talks with one of the market participants, SteelMint learned that currently, low-grade ore in Odisha is available at INR 500-600/MT /(ex-mines) including royalty.Road freight charges to Paradip Port have increased to INR 1,200/MT.
Current offers for Fe 57/58% low-grade iron ore are hovering in the range of 33-35/MT FoB India.Ex-mines realization for low-grade iron ore from Odisha will approximately come around INR 650/MT. But, the material is available at INR 500-600/MT (ex-mines) including royalty.
Alongside, from West coast of India, iron ore exporters have kept themselves away from exporting ore due to ongoing monsoon season. In talks with a West Coast-based major participant, SteelMint learned that exports from Goa are likely to increase after Oct’16 due to ongoing monsoon season.
In Jul’16, exports from Goa was registered at only 55,000 MT, which was around 2 MnT starting FY17.
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