Indian iron ore export in CY18 recorded at 10.58 MnT. Exports witnessed a 47% drop against 19.91 MnT in CY17. On monthly basis, exports have dropped marginally to 0.825 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% (8.61 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 0.53 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 2.11 MnT (down 32% Y-o-Y) and Vizag at 1.43 MnT (down 50%).
Will iron ore export Decline further?
Indian iron ore exports to China and other non-Chinese market have dropped drastically on yearly basis. Will Indian iron ore exports get affected by operation suspension at Goan mines and upcoming mines lease expiry? Want to keep a close track of Indian iron ore exports? To know more book your seat at the 3rd Indian Iron Ore & Pellet Summit to be held on 18 & 19 February 2019 in Delhi NCR.