Exports of iron-ore from India
are likely to fall as much as 39% this fiscal year because of supply snags, a
senior industry executive said Wednesday, even as demand from the commodity's
main consumer, China, has started to pick up after a two-month slump.
R.K. Sharma, secretary general of
the Federation of Indian Mineral Industries, said he expects exports during the
fiscal year through March to be 60 million to 65 million metric tons as against
97.64 million tons in the last fiscal year.
“Supplies from Goa have come
down 50% and mining in Karnataka is totally closed. There is also restriction
on ore movement by both truck and rail from Orissa,” Mr. Sharma said.
Karnataka & Goa account for
around 70% of India's total iron-ore exports. So, the moves to reduce the
environmental impact and illegal mining in these states have affected the
export figures.
Industry executives said export
volumes would peak gradually and prices could reach around $140 a ton by February-March,
when buyers restock after the winter season.
“Prices have gone up by
around $15 a ton in the last 15 days,” said Basant Poddar, vice chairman
of the Federation of Indian Mineral Industries. “A lot [on price
direction] will depend on supplies from Australia and Brazil.”
Mr. Sharma said he hopes some
pickup in supplies from Karnataka around December as 15-16 mines that have been
found not to violated environment laws may be allowed to restart mining.
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