India: No Iron Ore Export Movements Observed in August

According to the vessel line up data maintained by SteelMint, Indian iron ore exports recorded nil for the month of Aug'18. This drop down is witnessed in iron ore exports, after a gap of 3 years, as it was last seen in Sep'15.

Indian iron ore export shipments in FY'19 have witnessed a continuous drop every subsequent month since Apr'18 at 1.18 MnT to nil exports in Aug'18.

Indian iron ore exports for the month of July'18 stood at 0.17 MnT.

In the first five months of FY'19 iron ore export decreased sharply by 61% to 2.46 MnT as against 6.35 MnT in the same period last year (Apr-Aug'17).

Why Indian iron ore exports dropped to nil?

1. Goa Mining Ban: Iron ore industry in Goa has come to a standstill from 16 Mar'18, due to cancellation of mining leases of 88 mines in Goa. Goa 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. However, the halt in new mining activities has resulted in declining exports every month due to material scarcity. Goa contributes a major portion of Indian exports; post mining ban Indian exports have been hampered.

2. NMDC Iron ore Exports Recorded Nil: On 11th Jul'18, Indian government kept 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).
However, no movement for iron ore exports reported in Aug'18. NMDC iron ore exports have depicted nil since Apr'18.

3. Weather Constraints: Monsoons have impacted the iron ore production in Odisha,  resulting in reduced iron ore exports by merchant mines as well as NMDC.

4. Chinese demand for High Grade Ore: Amidst strict environmental norms, and approaching winter heating season from 1st Oct this year 2018, Chinese mills prefer high grade ore (pellet).

Indian Exports to China down 54% in FY'19

Indian exports to China have dropped 54% to 2.19 MnT in FY'19 (Apr-Aug'18), as against 4.77 MnT in FY'18 (Apr-Aug'17). China contributes more than three fourth of total Indian iron ore exports, however, has witnessed no imports for the month of Aug'18.