July 29
Iron ore exporters are increasingly looking at the domestic market, as demand for the ore witnessed decline on the back of sluggish weak demand from China, one of the major buyer of Indian ore said.
The recent controversy over illegal mining in some of the major States of the country and lack of clarity over export tax on the commodity added to this trend. The miners however played safe by entering into supply contracts with domestic manufacturers than relying only on exports.
“Many miners are setting up Pellet plants or Sponge Iron units in the eastern part of the country, prompting miners to divert the commodity to these units.” said R L Mohanty, Secretary of Orissa Miners’ Association. He also said that though new units would absorb some quantity of Iron ore fines, it would be difficult for miners to completely rely on domestic market.
Source: Business Standard, July 29, 2010
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