India's iron ore exports are
likely to be 75 percent lower than previously expected in the quarter ending in
March as a rise in export duties kicks in as part of the government's push to
conserve supplies for domestic steelmakers.
The export duty hike to 30% has
slashed the forecasts for exports for the year to March 2012 to around 50
million tonnes from 65 million. That was already down from 97 million tonnes
last year.
Given that India had exported
about 45 million tonnes in the nine months to December, it is likely to ship
only another 5 million tonnes in the three months to March 31, top industry
body, Federation of Indian Mineral Industries, said on Tuesday.
“We are shocked at the
decision to hike export tax on iron ore as such volatility in policy does not
promote India's image as a reliable supplier,” said Glen Kalavampara,
secretary of the Goa Mineral Ore Exporters' Association. Goa is India's biggest
exporter of iron ore.
“Absence of supplies from
India will help Australian and Brazilian suppliers to consolidate their
domination of the global market.”
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