India’s iron ore exports declined 13.31 per cent as economic recession affected global demand for the ore as demand for steel fell.
Total exports plunged to 55.8 million tonnes during April 1 - December 15 of the current fiscal compared to 64.38 million tonnes during the corresponding period last year. Shipments, however, witnessed a marginal decline of 3.81 per cent to 5 million tonnes during the first fortnight of December from 5.2 million tonnes seen during the same period last year, according to data collated by the Federation of Indian Minerals Industries (FIMI).
Indian iron ore exports rose slowly in late October but orders rose as steel mills in China that were closed last year for the Olympic Games began their operations gradually. "It will be difficult to achieve last year’s level", said Glenn Kalavampara, secretary of Goa Mineral Ore Exporters’ Association (GMOEA).
Total shipments from Mormugao port in Goa during the first fortnight of December dipped 27.18 per cent to 20.84 million tonnes over that seen during the corresponding period last year. Goan exporters ship mainly low grade iron ore from Karnataka and Goa to Chinese steel mills.
Indian Iron Ore exports (in units of 100,000 tonnes [1 lakh])
Month 2007-08 2008-09 %Chg
Apr 83.77 114.90 37.16
May 94.15 84.95 -9.77
Jun 59.41 56.32 -5.20
Jul 51.62 50.74 -1.70
Aug 53.88 41.55 -22.88
Sept 54.99 30.78 -44.03
Oct 83.68 41.39 -50.54
Nov 101.25 87.40 -13.68
Dec (1-15)52.02 50.04 -3.81
Total 643.77 558.07 -13.31
Haresh Melwani, CEO, H L Nathurmal & Co, a leading iron ore miner and exporter from Goa attributed the decline in exports to three major factors: frequent changes in exports levy on fines and lumps (the two grades of iron ore below and above 64 per cent of iron content respectively), slowdown in Chinese demand and buyers lenience towards Australia and Brazil because of a favourable government policy.
Melwani also forecast a 25 per cent decline in exports of iron ore from Goa to 20 millions last year. Similarly, both Karnataka and Goan-origin iron ore exports may also fall to 30 million tonnes compared to 40 million tonnes last financial year, Melwani added.
Last year, the government levied exports levy by Rs 300 per tonne which was later restricted to lumps only. Again, fines was brought under tax net and withdrawn after severe resistance from mining industry.
According to initial indications, the public sector National Minerals Development Corporation has posted 35 per cent decline in sales in December after 65 per cent and 40 per cent fall in November and October respectively.
Source: Business Standard
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