In accordance with the falling rupee against USD Iron ore exports at Paradip Port has suddenly increased by thrice the amount in the first quarter in comparison to the same period of FY 13. The iron ore fines of 62 grade exported in the first quarter of FY 13 was just 371,000MT which has grown up to 1.03 MnT in first three month period of FY 14.
Paradip Port is one of the major ports of India serving its Eastern and Central Region. It is an artificial deep-water port located in the East coast of India in Jagatsinghpur district of Odisha. It is situated at confluence of the Mahanadi River and the Bay of Bengal. The port is surrounded by its neighboring states which are Odisha, Jharkhand, Chhattisgarh, West Bengal, Madhya Pradesh and Bihar.
The rates of iron ore had declined by more than 15% during the period of April-June and are being traded at $114/MT in the ports of China. Meanwhile, with the fall of 9.5% in the value of rupee against USD in the same period gave an opportunity to the exporters to make a quick and profitable deal in spite of the slow demand for iron ore. “There is no major rush of importers to book Indian iron ore. The rise in exports was just because of the weak rupee as exporters wanted to clear some stocks at ports”, said R K Sharma, Director General of Federation of Indian Mineral Industries (FIMI).
East Indian ports are being considered to be in the topmost position in exporting of iron ore after the mining got banned in Karnataka and the exports from the ports of Goa were put on a limit. At present around 18 MnT of annual exports are being shipped from the east coast ports such as Paradip, Haldia and Vizag with about 4.5 MnT being contributed by Odisha.