Jun 22, 2016

Iron ore exporters hope for another 15% cut in rail freight rates

Iron ore exports are expected to get a push with an anticipated 15% cut in railway freight rates next month. “Abolition of the dual railway freight structure for iron ore has aided exports. Now, the railway ministry is contemplating to slash freight by 15%. This will incentivise iron ore exports and make it more competitive in the international market”, said an industry source.

The rail freight rate for iron ore transport is now Rs 300 a tonne for both import and export. Its export was six million tonnes in 2015-16, a 25% jump over the 4.8 mt in 2014-15. Before the 2016-17 Budget which announced the removal of a 30% export duty on low-grade ore (iron content less than 58%), exports were uncompetitive.
The Federation of Indian Mineral Industries (Fimi) has demanded the 30% duty be removed. It says ore stocks are rising in the resource-rich states of Odisha, Jharkhand and Goa. Fimi estimates the stockpile at pit heads at 150 mt by the end of March this year. Of this, it said, 85 mt were of fines, for which there are hardly any takers. Domestic demand from the steel, sponge iron and pellet industries is not adequate to absorb the production. Fimi says the remedy is export and the duty should go for grades of ore.

The union mines ministry, however, is not keen to remove the export duty on high-grade ore, in the face of strong protests from steel companies and pellet makers, the users.

Of late, the cut in rail freight rates, coupled with recovery in iron ore prices in China, had enthused exporters. “Miners are now getting better realisations after the railway freight rate for export was equalised with domestic movement. A weakening rupee has also enabled exporters to fetch better prices. Exports of ore have turned profitable, compared to the scene two months earlier, when mining forms were struggling to recover the cost of production,” said a senior official at one.

Export of iron ore fines (62% iron) is yielding profit of $2.9 a tonne for mining companies in Odisha. The CFR (cost and freight) China price for this grade was $56 a tonne. For low-grade fines (with Fe content below 57), the margins were much better, at $5.2 a tonne.

 

NEXT POST

EMPLOYEE NEWS CENTER

READ MORE -

Rail News - Public service (4204) Rail News - Public service (3650) Rail News - Rail Employee (2329) News - General (408) DIVISION - JABALPUR (357) Rail News - Rail Development (321) News - Spl Train (265) Rail News - Job - Career (207) DIVISION - BHOPAL (204) Rail news - Metro (195) Rail News - Circulars (143) DIVISION - HUBLI (133) DIVISION - MORADABAD (122) Office Order (105) DIVISION - ALLAHABAD (94) World Rail News (85) Rail news - Public Alert (80) News - Loco Pilot (77) Rail News - Rail Budget (69) HIGH SPEED RAIL (68) Rail News - 7th Pay Commission (67) Rail News - New Train (63) Improvement in Facilities (58) Rail News - Railway Safety (58) Accidents (55) Rail Development (55) Rail news - World Rail (49) Rail News - Tourism (39) Public Interest (37) Award (35) News- Railway Exam Result (35) Rail News - Freight Services (35) DIVISION - Delhi (34) Rail News - Sports (33) Trade Union (33) Bonus (PLB) (30) PIB (29) Bullet train (28) News - Railway Employee (28) new line (26) IRCTC (25) News - Dearness Allowance (24) Station Master (24) TATKAL TICKET (22) RPF / RPSF (21) Railway News - Metro (21) Complaint and Suggestions (20) Mumbai local (19) News - Job - Career (19) Rail News - Security (19) Railway Pensioners (19) News - Catering (18) Rail News - Special Train (18) Railway time table (17) News - New Tech (16) Circulars - Govt of India (15) Scam (15) ‘Premium’ Special Trains (15) Know About (14) Rail News - Railway Revenue (14) Rail news - Employment Notification (14) Railway News - Delhi Metro (14) Catering Related Complaints (13) Railway Joke (13) Freight Corridor (12) Railway Board (12) DIVISION - RAIPUR (11) Dedicated Freight Corridors (11) Indian Railway History (11) Rail News - Security (11) AISMA (9) News - Exam Result (9) Passenger Amenities (9) Rail News - New Rail Line (9) Railway pass (9) Budget (8) DIVISION - Ambala (8) Employee News (8) INCOME TAX (8) PHOTO (8) Premium Air-Conditioned (8) World Rail - China (8) fares hikes (8) semi-high speed (8) Central Railway (7) Night Duty Allowance (7) Rail Accidents (7) Rail budget (7) online tickets (7) International Railway (6) Mono Rail (6) Mumbai Metro (6) News - Budget (6) Public Grievances (6) Rail Fares (6) Railway Safety (6) Ticket Booking (6) Train Cancellation (6) World Rail - Japan (6) Zone - Western Railway (6) extra coaches (6) guard (6) Always Important (5) Children Education Allowance (5) Drinking Water (5) HELP (5) Holiday Trains (5) IRCON (5) LOCOMOTIVE (5) Rail History (5) Rail News - Business (5) booking counters (5) hi-tech (5) macp (5) AIR - RAIL (4) Coaches (4) Food plazas (4) IMPORTANT RULE (4) Mumbai (4) News - Railway Rule (4) RAIL TEL (4) Rail Neer (4) Rail News - Rules (4) Railway Minister (4) World Rail - Pakistan (4) Zone - South Central Railway (4) e-ticket booking (4) escalators (4) Booking - Parcel (3) CCTV (3) DOUBLE DECKER TRAIN (3) Electrification (3) Konkan railway (3) Leave Rule (3) Medical Allowance (3) Member Engineering (3) Modal Question Paper (3) News - Rail Road (3) News- Railway Exam (3) PASS (3) Question Bank (3) Rail News - China (3) Rail fare hike (3) Suvidha Train (3) TRANSFER POLICY (3) VAISHNO DEVI (3) new pension scheme (3) reservation (3) tatkal ticket (3) Booking - Luggage (2) D & A RULE (2) Extension of train services (2) Khumbn Mela (2) LDCE (2) MATHERAN (2) MOBILE APPS (2) Minister of State for Railways (2) National Rail Museum (2) News -World Film (2) OROP (2) Passenger Reservation System (2) Police help desk (2) Provident Fund interest (2) Rail News - Goods Train (2) Railway Protection Force (2) Railway Proud (2) Railway Stations (2) Retiring Rooms (2) Revenue earnings (2) South Eastern Railway (2) Zone - East Central Railway (2) Zone - N E RLY (2) Zone - Northern Railway (2) Zone - Southern Railway (2) railway station (2) ALER (1) Air Travel (1) DIVISION - CENTRAL RAILWAY (1) DIVISION - MADURAI (1) DIVISION - VIJAYWADA (1) Directory (1) Division - Rangia (1) FOOT OVER BRIDGE (1) FORMS (1) Government Railway Police (1) House Rent Allowance (1) Interesting Facts (1) JAIPUR (1) LARGESS (1) LONDON (1) Lifeline Express (1) MST (1) Measures Against Fire (1) Medical Care (1) Ministry of Railway (1) News - TV (1) Passenger Security (1) RDSO (1) Rail - Roko (1) Rail Bridges (1) Rail News - Privatization (1) Rail News - Bengali (1) Rail News - Consumer Forum (1) Rail Tariff (1) Rail Tenders (1) Rail e-tickets (1) Railway Act (1) Railway Quarter (1) Railway Week (1) Rath Yatra (1) Road over Bridges work (1) SCRA (1) SKY BUS (1) Sainagar Shirdi (1) Suburban trains (1) Swadeshi (1) TRAVELLING ALLOWANCE (1) Ticket Examiner Staff (1) Track Man (1) WhatsApp (1) World Rail - New York (1) World Rail - Russia (1) World Rail - USA (1) World Rail - Washington (1) Zone - E RLY (1) Zone - N C RLY (1) Zone - North Western Railway (1) Zone - Northeast Frontier Railway (1) Zone - S E Railway (1) fire-fighting equipment (1) mobile ticket booking (1) smart card (1) wagon factories (1)

7th Pay Commission & Employee News Center

Followers