Essel Mining to Ship First Iron Ore Export Shipment in FY17

After a time span of 15 months, one of the major Odisha-based iron ore miner, Essel Mining & Industries is exporting around 55,000 MT low grade ore. This is the miners' first iron ore export shipment in FY17.

A vessel named "Ken Sea" carrying 55,000 MT low grade iron ore is expected at Paradip Port and likely to ship to China.

Current export offers for Fe 57/58% iron ore fines are hovering in the range of USD 30-32/MT, FoB India.

The shipment is likely to ship to China because of increasing Chinese demand. Firm global iron ore index prices at USD 58/MT, CFR China remains a source of attraction for Indian exporters.

It should be noted that the miner exported its last shipment of 39,300 MT iron ore in the month of Jun'15. However, earlier due to 10% export duty on low grade ore, the miner was unable to make a position in export market and was entirely into dometic sales.

But, with the scrapping away of export duty on low grade ore by Indian government, the miner is all set to export low grade ore.

It is to be noted that Odisha based iron ore exporters are actively participating in exports. Rungta Mines, the largest Odisha based iron ore exporter has already exported 0.79 MnT iron ore in FY17.