Friday, November 19,
Karnataka Govt. upheld the decision on lifting the ban from exports of iron ore. The ban will continue for another 6 months and will be reviewed after that- said a mines owner based in Karnataka.
Exports of iron ore from India were down significantly after Karnataka Govt. had banned exports of iron ore on 10th July to curb illegal mining and preserve resources from own consumption.
Maintaining the ban imposed by the state’s government since July as part of a crackdown on illegal mining means exports from India will remain low. That would give Australia and Brazil, the two biggest exporters, an upper hand in negotiations with China, the biggest buyer of the steelmaking raw material.
Shipments from Karnataka account for around a quarter of annual iron ore exports from India, the world’s third-largest supplier, which ships about half of its yearly output of over 200 million tonnes.
There has been constant debate in India on the merits of exporting iron ore with miners against export curbs while the steel sector has long lobbied for a total ban to conserve more of the raw material for use by domestic plants.
Fewer cargoes out of India will add to an expected tightness in global iron ore supplies next year, which may force Chinese steel mills to accept higher raw material costs.
The ban helped prices recover from seven-month lows hit in July and, along with weather disruption in other parts of India delaying shipments and Chinese stockpiling, had supported a recent surge in iron ore prices to their highest levels since mid-May.
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