Iron ore exports from India are likely to decline to about 45 million tonnes (mt) during the current financial year (2012-13), showing a drop of 62 per cent compared to an all-time high of 117 mt exported in 2010-11 and 37.7 per cent fall from the last financial year’s 62 mt.
“Exports are no longer viable following a high export duty of 30 per cent and differential freight rate charged on iron ore for domestic and export use by the Indian Railways. Also, the ban on mining in Karnataka has added to the industry's woes,†said R K Sharma, secretary general, Federation of Indian Mineral Industries (Fimi).
Except for Goa, no state is exporting. There is no freight cost for Goan miners due to the proximity of port. Also, they use river transport, which is very cheap. In the long run, only Goa would continue to export,†Sharma said.
Presently, iron ore prices in international markets have dropped to $97 per tonne as against $150 per tonne a year ago, which is a drop of 35 per cent. “Exports from Goa have been showing a declining trend over the last 15 days. Chinese buyers might prefer to buy high-grade ore at $97 per tonne rather than buying low-grade ore originating from Goa. Hence, overall exports in the third quarter are likely to drop further,†an industry analyst said.
Source: PTI
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