SMM7: recently, in order to minimize the risk of the spread of the new crown virus and ease traffic congestion, the government imposed restrictions on the number of trucks going to the ports of Paradip and Gopalpur, effective June 25. Cargo restrictions at the port of (Odisha) in the Indian state of Orissa are expected to put pressure on Indian iron fans during the monsoon season.
According to the documents, the truck transport quota for Paradip is 935 per day, while the truck transport quota for Gopalpur is 332, and sources estimate that the truck transport quota at Paradip has been reduced by 60 per cent by 70 per cent.
Market sources pointed out that after the nationwide lifting of the blockade, there have been long queues of trucks entering Paradip, and the logistics of many companies have been overstocked for a long time.
The total quota will be allocated according to the export demand of the mining companies, and shipments are expected to be weak in July. Sellers said there was little spot supply of Indian iron fans in July because of the monsoon season, but producers were unable to make a profit because of logistics delays. Quotas will not immediately solve the congestion problem, but they may allow large producers to export die-hard fans more effectively.
Chinese traders say the pricing of Indian die-hard fans is attractive in theory, but concerns about delays and logistics could lead end-users to buy low-quality Australian fans instead.
Export data show that a total of 4.09 million tonnes of iron ore were exported from Paradip between April and May 2020.
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