Indian iron ore exports have recorded sharp decline in
Q1 FY19. The exports witnessed at 2.31 MnT, down 61% Q-o-Q as against Q4 FY'18
at 5.87 MnT. On yearly basis, the exports have depicted fall of 56% as against
5.21 MnT in Q1 FY'18.
Why have Indian iron ore export volumes come down
sharply?
Goa Mining Ban:
The
declining exports from Goa miners owing to cancellation of mining operations at
88 mining lease post 15th Mar'18 by the Supreme court resulted fall in export
volumes. Goan miners were permitted to export iron ore mined previously to the
ban imposition (15th Mar'18), on which royalty was paid, and material lying at
jetties, with halt in new mining operations. This resulted in low exports in
quarter and nil exports in the month of June'18.
NMDC iron ore exports remain nil in Q1 FY19:
Exports
from NMDC continued to remain nil for the 3rd consecutive month in June'18.
Iron ore exported by NMDC under MMTC under Long-Term Agreement to South Korea
& Japan was subject to an export duty of 10% which expired on 31 Mar'18.
And as of now, there has been no update regarding duty structure.
Indian iron ore export drop to 1-year low in Jun'18
Indian iron ore exports in June'18 witnessed at 0.34
MnT, down 58% M-o-M as against 0.79 MnT in May'18. The exports have dropped
down to lowest since June'17 at 0.25 MnT.
Vedanta remains the largest iron ore exporter
Vedanta marked the largest exporter for the quarter Q1
FY19 at 0.77 MnT, down 52% as against 1.59 MnT in Q4 FY18. Vedanta's exports
remained nil in June. Rungta mines stood the second largest exporter at 0.57
MnT, down 23% Q-o-Q. Other major exporters were VM Salgaonkar at 0.52 MnT (up
17% Q-o-Q), and Chowgule and Company at 0.17 MnT.
For the month of June'18, Rungta mines stood the
largest exporter at 0.28 MnT (up 23% M-o-M), followed by Essel mining at 0.03
MnT (up by more than two folds M-o-M).
Source: steel mint