Indian exports of iron ore pellets almost doubled during June this year to 499,600 mt compared to 226,350 mt shipped during May, a government official said citing official data on Friday, July 8.
The government official said that a combination of factors like the scrapping of dual freight rates charged by Indian Railways for transporting domestic and export shipments of iron ore and iron ore pellets, higher production by large pelletizing plants and the availability of cheap iron ore fines contributed to the higher shipments.
The impact of the rebound on the international price of iron ore over the past month and the scrapping of the five percent export duty on pellet exports earlier this year is beginning to be felt, the official said.
The official also stated that the anticipated 15 percent cut in freight rates by the Indian government-operated Indian Railways, expected later this month, will contribute to sustaining higher pellet exports. According to rough estimates, it could translate into a INR 300/mt ($4/mt) gain in margins on export shipments on account of the savings on transportation charges, he added.