Iron ore exports from Paradip drops to all-time low in FY15

Shipments slump to 0.12 mn tonnes from 5.6 mn tonnes a year ago, due to shut down of key mines, weak global demand and high export duty

Exports of iron ore slumped to just 0.12 million tonne  (mt) from Paradip port in the year ending March 2015, from 5.6 million tonne recorded in the year ago period, due to shut down of key mines, weak global demand and high export duty.

"Export of iron ore was close to nil this year and mostly iron ore pellets were exported. However, the port received 1.03 mt imported iron ore shipments, which was again shipped to Haldia port in small vessels," said an official of Paradip port.

The trend in Paradip port is in sync with all domestic ports, which have seen increased imports and lesser exports.

All India iron ore exports slipped to just 5.5 mt in 2014-15 after combining all major port traffic data, lower than 16 mt exported in 2013-14. In the same period, imports of the steel making raw material surged to 15 mt, trade sources said.

Federation of Indian Mineral Industries (FIMI) has not come up with its export and import of iron ore data as of now. Directorate of Mines of Odisha government has also not released its iron ore export  data for the top producing state yet.

Imports surged in the last fiscal as Supreme Court ordered to shut down 26 iron ore mines situated in the state including captive mines of Tata Steel and Steel Authority of India Ltd (SAIL). After closure order, Tata had ordered around four million tonne iron ore for its Jamshedpur plant via different ports.

Last week, a panel of top bureaucrats in the Odisha government decided to extend the leases of the mines which were asked to halt production following SC order last year. An official in the steel and mines department said the government would complete the lease extension procedure before April 20.

Mineral traders said increased iron ore imports last fiscal was a one-off case and might not be repeated this year due to opening up of the mines in Odisha.

"I believe the steel plants seeking iron ore will continue to look for Odisha after the opening up of mines and hence, the I feel there will be a fall in imports this year," said a state-based iron ore trader.

JSW Steel, which was biggest importer of iron ore last year, used to buy iron ore from Odisha before the apex court order wiped out 35 mt production in the state.