Home > Data Bank, Metals, Trade (Import-Export) > Iron ore exports from India to decline in FY ’11

Iron ore exports from India to decline in FY ’11

Slowing demand from China, the largest producer of steel in world, and a ban on exports by the state of Karnataka has resulted in sharp decline in India’s iron ore exports in the first half of the current fiscal even as the global prices remain reasonably strong.

The Federation of Indian Mineral Industries (FIMI) expects that iron ore exports from India to decline by around 20% at least over the current fiscal as the slowing demand from key importers, high export duty imposed by the central government and ban by Karnataka hits India’s shipments.

According to the data released by the port association of India, iron ore exports from the major ports in the country have declined by 14.20% in the Apr-Sept period of the current fiscal. Total exports during the period stood at 36 million tonne as compared with a figure of 42 million tonne a year-ago.

Ports where iron ore handling declined substantially include Chennai, Ennore, and New Mangalore. All of these handle a large chunk of iron ore exports from Karnataka. The downturn was sharpest in the Chennai port that handled only 20.71 lakh tonne of iron ore compared with 43 lakh tonne a year ago. Similarly, the New Mangalore managed to ship only 21 lakh tonne of the crucial raw material in the Apr-Sept 2010 period compared with 42 lakh tonne a year ago.

  Iron ore (excluding for steel plants) traffic on railways Iron ore traffic for export on railways Iron ore traffic for other domestic users (other than steel plant) on railways
  ‘000 tonnes % YoY growth ‘000 tonnes % YoY growth ‘000 tonnes % YoY growth
Apr- Sep-05    

20470

16.44    
Apr- Sep-06    

18060

-11.77

   
Apr- Sep-07

42680

N.A.

24370

34.94

18310

N.A.

Apr- Sep-08

47200

10.59

24420

0.21

22780

24.41

Apr- Sep-09

43660

-7.5

22150

-9.3

21510

-5.58

Apr- Sep-10

35650 -18.35 13650 -38.37 22000

2.28

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