Indian Railway’s move to raise freight cost on iron ore for exports by 50% from January 27th 2011 to take advantage of firm global prices, may further push up prices that are already hovering around record highs.
Iron ore prices have been marching towards USD 200 a tonne, a record last seen in February 2008 and analysts said that the Indian supply situation will be key in deciding future price direction.
A railways official said that "There has been an increase in prices in China. Exporters have been gaining, so why not the railways.”
The railways stated in a circular, dated January 25 that it would raise the freight cost on iron ore for exports to INR 1,500 (USD 32.9) per tonne from January 27th 2011.
(Sourced from Reuters)