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Iron ore exports from Goa up 9 pc

Shyam G. Menon

MUMBAI, Dec. 14

A 9.73 PER cent rise in iron ore export volumes from Goa during April-November 2000-2001 has fanned hopes of the year-end volumes touching 18.5 million tonnes (M.T) overall, as compared to the 16.41 M.T of 1999-2000.

Goa accounts for 52-55 per cent of the country's total iron ore exports. With the busy season in iron ore export having started late this fiscal, December, January, February and March are deemed critical for deciding the export position at fiscal's close , from Goa.

Export of iron ore of Goan origin touched 8.34 M.T by end-November this fiscal, up from the 7.6 M.T of same time previous year.

``The anticipated final volume is close to the highest ever figure of 19.27 M.T registered in 1997-1998,'' Mr S. Sridhar, Secretary, Goa Mineral Ore Exporters' Association (GMOEA), said.

He estimated that total Goan iron ore export would reach 16.5 - 17 M.T by year-end, while the non-Goan component should be around 1.5 - 2 M.T.

Among export destinations, by end-October 2000, Japan had registered a 25-per cent rise in offtake from Goa. At fiscal's close, this rate is estimated to average 18-20 per cent. Taiwan and UAE had increases in import of 100 per cent and 133 per cent resp ectively.

On the other hand, China recorded a 28-per cent decline, as did Korea with a fall of 31 per cent. Europe, on the whole, reduced offtake by 25 per cent.

However within Europe, Italy and Germany raised their import of Goan iron ore by 100 per cent each, as did Turkey. Markets which cut import included France and Romania.

In 1999-2000, Japan had accounted for 56 per cent of overall Goan iron ore export, China - 16 per cent and Europe - 20 per cent.

Japan, the one large market in which almost every Goa-based iron ore exporter maintains a toe-hold, is believed to have increased its off-take following sustained uptrend in its iron ore market (and in steel production) since last year.

Unlike the UAE market where fixtures are on a spot basis, Japanese contracts are for a longer period.

``When a cyclical uptrend occurs, Japanese stocks deplete and they begin stocking up afresh on iron ore, buying at higher price,'' Mr Sridhar said.

In fact, for 2000-2001, the export price of fines, which constitutes 80 per cent of Goan iron ore export, has increased by 4.35 per cent, while that of lumps, which accounts for the balance 20 per cent, rose by 5.77 per cent.

Export to Europe however, suffered a price dip, due to freight rate disadvantages, which, given the C&F basis of shipment that side, forces the exporter to cut prices to maintain a competitive landed cost.

Though China is expected to revise its contracted iron ore import price early next year, Mr Sridhar said what decided year-end fortunes were volumes, less the export price. This was because, even if higher prices were negotiated from the importer, some o f that was offset by inflationary costs and transport costs at the shippers' end.

Nevertheless, the higher price will have its impact on overall export value, the GMOEA estimating 2000-2001 figures to touch Rs 800 crore as against the Rs 721 crore of 1999-2000.