Indian iron ore export in CY18 recorded at 10.52 MnT.
Exports witnessed 47% drop against 19.91 MnT in CY17. On monthly basis, exports
have dropped 7% to 0.77 MnT in Dec’18 against 0.83 MnT in Nov’18. However,
exports have decreased significantly by 48% on yearly basis in Dec’18 against
1.50 MnT in Dec’17.
Why did Indian iron ore exports fell in CY'18?
Delay in resumption of exports from NMDC: NMDC’s LTA (Long-term
agreement) to export iron ore to South Korea and Japan had expired owing to
which the miner recorded nil exports for a period of five months from Apr’18 to
Aug’18. On 25th April’18, NMDC received approval for supply of iron ore to
Japan and South Korea for a period of three years i.e from Apr’18 to 31 Mar
2021. Later the miner resumed exports in Sep’18.
Goa Mining Ban impacted export volumes adversely: Operation
at Goan mines was put to halt owing to illegal mining case post-Mar ’18. The
mines 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
the halt in new mining operations. This resulted in declining exports from Goa
since Mar’18 and dropped to nil in June’18. Vedanta recorded no exports
post-Apr ’18.
Iron Ore Exports from Vedanta down significantly in
CY18
Vedanta stood the largest iron ore exporter at 2.42 MnT
in CY’18, down by 50% against 4.88 MnT in CY’17. Rungta Mines stood the second
largest exporter at 2.31 MnT followed by MMTC (which exports on behalf of NMDC)
at 1.40 MnT (down 42% Y-o-Y).
Indian exports of Iron Ore to China Dropped 47% in CY18
China contributed for a share of 81% (8.56 MnT) of total iron ore exported from
India in CY’18. However, the exports witnessed a sharp decline on yearly basis
as against 16.23 MnT in CY18. Japan stood second largest importer at 1.45 MnT
(down 47% Y-o-Y) followed by South Korea at 0.15 MnT (down 75% Y-o-Y).
In Dec’18, China imported 0.47 MnT down against 0.60
MnT in Nov’18 followed by Japan at 0.15 MnT.
Exports from Mormugao port recorded drop of 43% in
CY'18
On yearly basis in CY’18, Mormugao port accounted for the largest share in iron
ore exports at 6.20 MnT in CY18, down 43% against 10.95 MnT in CY17 followed by
Paradip at 2.06 MnT (down 34% Y-o-Y) and Vizag at 1.43 MnT (down 50%).
Source: steel mint