Indian Iron ore exports awake in July
India exported 5.9-million-tonne iron ore in July, a 2% increase over the same period last year after clocking 26 million tones of exports during the April-June quarter, the same as the year-ago period, according to data collated by Association of Iron Ore Exporters India. The growth comes at a time when the finance ministry is considering a proposal by the steel ministry to levy 10% tax on export of iron ore to ensure availability of ore to domestic steel makers. The steel ministry recently wrote to finance Minister Pranab Mukherjee suggesting that the proposed export duty has become essential for ensuring availability of iron ore to domestic steel companies, which have been facing lower supply of the raw material for the past 5-6 months.
The iron ore exports rose around 5.4% in July from 5.6 million tonne in June, according to the study conducted jointly by Goa Mineral Ore Exporters Association, “Demand for ore is coming mainly from small steel makers in China, which are dependent on the raw material sold in the spot market,” said RK Sharma, secretary general, Federation of Indian Mineral Industries. Iron ore exports will continue to differ over the next few months till demand revives from large steel producers, he added. As a result, supply orders for the large Chinese steel firms are yet to pick up. India produces close to 200 million tonne of iron ore every year, half of which is exported. Around 80% of the country’s ore exports go to China.
The iron ore exports rose around 5.4% in July from 5.6 million tonne in June, according to the study conducted jointly by Goa Mineral Ore Exporters Association, “Demand for ore is coming mainly from small steel makers in China, which are dependent on the raw material sold in the spot market,” said RK Sharma, secretary general, Federation of Indian Mineral Industries. Iron ore exports will continue to differ over the next few months till demand revives from large steel producers, he added. As a result, supply orders for the large Chinese steel firms are yet to pick up. India produces close to 200 million tonne of iron ore every year, half of which is exported. Around 80% of the country’s ore exports go to China.
|
|
