Indian Iron ore Exports Hit Almost 3 Years Low in July

In the first four months of FY’19 iron ore export decreased sharply by 57% to 2.5 MnT as against 5.8 MnT in the same period last year (Apr-Jul’17).

Why have Indian iron ore exports plunged?

1. Rake availability issues in eastern India- Rake availability for iron ore & pellets in eastern India has remained critical resulting in limited material movement. Also amid monsoons, iron ore production in Odisha has seen a decrease.

2. Goa Iron ore exports remain nil- As the Goa miners have already shipped the material lying at jetties, now they are left with no stock to be exported. Owing to the cancellation of mining operations at 88 mining leases in Goa post 15th Mar`18 by the Supreme Court resulted in fall in export volumes.

3. NMDC iron ore exports remain nil- Clarification on iron ore exported by NMDC under LTA was waited. Last month on 11th Jul’18 Indian government has renewed export duty unchanged at 10% for iron ore exported from National Mineral Development Corporation (NMDC) to Japanese and Korean mills under Long Term Trade Agreement (LTA).

Rungta Mines turn out to be the largest Iron ore exporter in Jul’18-: Rungta Mines remained the largest exporter at 0.12MnT (down 57% M-o-M), followed by SM Niryat 0.04 MnT and others 0.01 MnT in Jul’18.

China remained the single destination for Indian Iron ore exports in Jul’18 - China remained the only export destination for the month of Jul’18 at 0.17 MnT decline of 39% M-o-M against 0.28 MnT in Jun’18.