Indian iron ore exports in April to November dip by down 28pct YoY

Monday, 02 Jan 2012

Indian iron ore exports dipped by over 28% YoY to about 40 million tonnes in April to November 2011 following ban on shipments from Karnataka and subdued output in Goa. According to the data released by Federation of Indian Mineral Industries, iron ore exports from the country were over 55.5 million tonnes in the year ago period.

FIMI Secretary General Mr RK Sharma told PTI that "The decline in exports of iron ore is due to a number of reasons. The Karnataka ban comes on the top. Also, several mines in Goa are closed and the Odisha government has stopped giving export permits.” Iron ore exports from the country were not positive since the beginning of the current fiscal compared to the corresponding periods of the last fiscal. The most glaring fall was in August, when it came down by nearly 45% to 2.6 million tonnes from 4.7 million tonnes. November was equally bad as shipments dipped by nearly 44% to 4.7 million tonnes against 8.3 million tonnes recorded in November 2010.

India the third largest global exporter of iron ore, had exported 97.64 million tonnes iron ore in the last fiscal, down from 117.3 million tonnes in 2009-10.

(Sourced from PTI)

India for more iron ore export curbs, duty rise seen

25 Feb, 2011, 06.34PM IST,REUTERS

NEW DELHI/MUMBAI: India's steel minister called for curbs on exports of iron ore on Friday, as the federal government heads into a budget that could raise export duty on the steel-making ingredient marginally.

"Yes, I am in favour of it. There should be more control on (iron ore) exports," Steel Minister Beni Prasad Verma said on Friday.

India's government is unlikely to approve a blanket export ban as it would prefer better regulation and incentives for increased domestic use of the steel-making resource, as demand in the world's second-fastest growing major economy rises.

In April last year, India raised the export duty on iron ore lumps to 15 per cent from 10 per cent previously. Duty on iron ore fines stood at 5 per cent.

The ministry of railways hiked the transportation cost 50 per cent to 1,500 rupees per tonne on Jan. 27, but kept it unchanged in Friday's Railway Budget. The government presents its budget for 2011/12 on Monday.

"There could be a marginal hike in export duty (of iron ore)," said Vasant Poddar , vice-president at the Federation of Indian Mineral Industries ( FIMI )), a trade body. "These curbs on iron ore exports are not warranted as nobody in the world, be it Europe, Japan, South Korea and U.S. consumes our low grade iron ore, other than China," he added.

Supplies of the steel-making ingredient from India have been limited by a ban of shipments from the southern state of Karnataka, which is currently being appealed by exporters in the Supreme Court.

Exports fell for the sixth straight month in December 2010 as the Karnataka state ban continued to bite. Exports were down 24.8 per cent year on year and fell 17.02 per cent in the April to December period.

Iron ore prices have risen around 13 per cent this year, adding to gains of more than 40 per cent in 2010. (sourced:Reuters, ET)

Tags : ban of iron ore shipment from Karnataka, raw material, steel mills