Vedanta continues to remain India's Largest Iron Ore Exporter in CY'17

Indian iron ore export increased by 10% in CY'17 to 19.91 MnT against 18.06 MnT last year CY'16.

Vedanta continued to remain India's largest iron ore exporter at 4.88 MnT in CY'17 against 6.56 MnT in CY'16. Other major exporters were Fomento Resources at 3.44 MnT and NMDC at 2.43 MnT.

Odisha's Rungta Mines increased iron ore exports by 77% Y-o-Y to 2.26 MnT in CY'17.

India's iron ore exports to China up by 14% in CY'17 - China contributed for a share of 82% (16.23 MnT) of total iron ore exported from India in CY'17. India's iron ore exports to China increased compared to 14.29 MnT in CY'16. Other major destinations were Japan (2.62 MnT) and South Korea (0.61 MnT).

Why iron ore export from India increased slightly in CY'17?

1. Export Duty reduces to Nil-: Export duties for iron ore lumps and fines below 58 percent Fe content were reduced to nil from 30% and 10%respectively in 2016. Resulting in increased exports from Goa. However, demand for high-grade ore in China owing to strict environmental norms has resulted in lowering demand for low-grade iron ore.Iron ore exports from Mormugao port stood at 10.95 MnT in CY'17 against 11.13 MnT in the previous year.

2. Odisha miners raised exports-: Iron ore exports from Odisha increased sharply in the year 2017 amid improved demand for high-grade material in China. Iron ore exports from East India based ports (Dhamra, Paradip, and Haldia) were increased by 60% to 12.39 MnT in CY'17 against 7.78 MnT in CY'16.

What can we expect in 2018?

The steel production cuts in the winter season, are now been extended for another eight months. Amidst stricter environmental norms in China, mills are expected to prefer high-grade iron ore as feedstock as a cost-effective means for production.

With Apex Court banning iron ore mining in 88 leases in Goa with effect from 16 Mar'18, iron ore exports volumes from Goa may remain disrupted.