India: Iron Ore Export Drops 87% in Q2 FY`19
Mining News Pro - Indian iron ore exports have recorded sharp decline in second quarter FY19. The exports witnessed at 0.29 MnT, down 87% Q-o-Q as against Q1 FY`19 at 2.28 MnT. On yearly basis, the exports have depicted decline of 82% as against 1.57 MnT in Q2 FY`18.
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According to Mining News Pro -Indian iron ore exports have recorded sharp decline in second quarter FY19. The exports witnessed at 0.29 MnT, down 87% Q-o-Q as against Q1 FY`19 at 2.28 MnT. On yearly basis, the exports have depicted decline of 82% as against 1.57 MnT in Q2 FY`18.

In Sep`18, the total iron ore exports witnessed at 0.12 MnT against being nil in Aug`18. On yearly basis, exports dropped 73% as compared to 0.44 MnT in Sep`17.

Why did Indian Iron Ore Exports Dropped in Q2 FY`19?

1. Goa Mining Ban: 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 declining exports from Goa since Mar`18 and dropped to nil in June`18. The material unavailability resulted in nil exports from Goa for Q2 FY`19, which otherwise stood largest iron ore exporting state from India.

2. NMDC recorded no exports in Q2 FY`19: Iron Ore exports from NMDC witnessed nil for second consecutive quarter in FY`19.

3. Reduced production due to weather constraints: Monsoons impacted the iron ore production in Odisha, resulting in reduced exports for the quarter by the merchant mines.

4. Chinese preference for High grade ore: The strict environmental regulations in China, and winter heating season (1st Oct`18 to 15th Mar`19) has rendered increased preference of high grade iron ore by Chinese still mills.

SM Niryat turned out to be the largest iron ore exporter in Sept`18

For the month of Sep`18, SM Niryat contributed 53% of total exports at 0.062 MnT and remaining 47% contributed by Rungta mines at 0.06MnT.

Rungta mines stood the largest Indian iron ore exporter for the quarter at 0.17 MnT , down 70% Q-o-Q as against 0.57 MnT in Q1 FY`19. SM Niryat stood the second largest exporter at 0.10 MnT.

China stood sole importer of Indian iron ore in Sept`18

China stood the only importer of Indian iron ore in the month of sept`18 at 0.12 MnT as against the no export recorded last month.

Paradip port stood the only exporter in Sept`18

In Sep`18, Paradip port stood the sole exporter of Indian iron ore at 0.12 MnT as against no exports observed in the month of Aug`18.

NMDC resumed exports after a gap of five months

According to railways data maintained with SteelMint, NMDC is to resume iron ore exports in Oct`18 as it has already resumed rake movement for exports in the month of Sept.

NMDC’s LTA (Long term agreement) to export iron ore 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, On 11th Jul`18 Indian government renewed export duty unchanged at 10% for iron ore exported from NMDC.

NMDC has resumed iron ore rake movement to Vizag port for exports in Sep`18.


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