Bulk Carriers

Bulk Carriers – Iron ore production in India is projected to fall in FY18

Iron ore production in India is projected to fall 15 per cent in FY18 after rising steadily for two successive years since 2014-15 as closure of seven working mines in Odisha and lesser production in Goa will weigh on total output. The cease of operations for seven working iron ore leases in Odisha on January,1 this year will impact production as their combined annual capacity is 20 million tonnes per annum. It is believed that the expected production loss would be reflected in the January-March quarter. Odisha is the country’s largest producer which contributed 102 million tonnes to the pan-India output of 191 million tonnes in last fiscal. Closure of mines in Odisha will have adverse impact on iron ore production, while the output impacted could be around 15-20 per cent according to the Federation of Indian Mineral Industries (Fimi). During this fiscal, iron ore exports stood at 10.11 million tonnes (till August end). Exports are likely to decrease during the current financial year in comparison to previous year 2016-17. The fall in exports will be due to likely less exports from Goa and due to the continuation of export duty of 30 per cent on iron ore of Fe grade above 58 per cent.