Iron Ore exports from Paradip port rise significantly in last few months. However total exports from India will remain low in FY 2013-2014.
Iron ore exports from Paradip, Indian east coast, have shown significant growth in last few months on account of falling Rupee, rise in global prices and re-allotment of plots at Paradip port. Exports have almost trebled in last 3 months, amounting to 1 million tonnes which was about 3,70,000 tonnes in corresponding period of the previous year.
Thanks to the falling Rupee against US Dollar, which has depreciated almost 12 per cent in last three months and almost 6 per cent in last one month (currently trading at 60.06 levels against USD). Another reason sought is rise in global iron ore prices in Chinese market, which has surged almost 12-13 USD per tonne in last one month and trading at US $123.9 per tonne CFR North China for Fe 62%, according to Platts index.
However,Indian exporters feel that exports from Paradip port have primarily gone up due to re-allotment of cancelled plots and fall in road freight charges. “Exports from Paradip have certainly gone up, as we have option of loading partial cargo from Paradip port and partial cargo from Haldia port. Since plots were not operation at Paradip, it was not viable to export from Haldia port Also low road freight charges from Barbil to Paradip port has increased our realizations.” said an iron ore exporter based in Indian east coast.
India’s iron ore export to China have fallen significantly in financial year 2012-2013 by almost 70% compared to the previous year. India roughly exported 18-19 million tonnes of iron ore in FY 2012-2013 as compared to 62 million tonnes in FY 2011-2012.
After mining ban in Karnataka and Goa; Odisha holds the highest share in iron ore exports from India.