Indian iron ore export shipments in September this year have been provisionally estimated at 4 million mt, up from 1.14 million mt during the corresponding month of the previous year, according to data sourced from the government.
It is also estimated by the government that around 95 percent of outward shipments of iron ore were to China. September exports were about three percent higher than shipments during August.
The rising volume of iron ore exports is expected to trigger a shortage of raw material availability in the domestic market as, of the 19 iron ore mining leases auctioned in Odisha since March this year, only five have been made operational.
The Odisha government had auctioned the 19 iron ore mines as the previous mining leases had expired on March 31.
“Iron ore availability in the second half of the current fiscal year will depend on the pace at which new merchant miners who have bagged mining leases at the auction ramp up output and ex-mine owners are able to dispose off their accumulated stocks, and export demand,” rating and financial advisory firm Ind-Ra said in a report.
“Industry participants who do not have captive iron ore mines could face risks in iron ore availability and higher prices in the near term,” the report said.
Erstwhile iron ore mine owners have been granted a one-month extension until October 30 to liquidate stocks already lying at their expired leasehold mining areas.