Friday, January 21,
Orissa, the nation’s largest producer and third-largest exporter of iron ore, is considering banning exports of the steelmaking material to thwart illegal mining and increase local supplies.
“A decision is expected soon, following which the state government will seek federal approval,” Orissa Mines Minister Raghunath Mohanty said today in an interview, without giving a timeframe. The eastern state exported about 20 million metric tons, almost a third of India’s overseas shipments of the material.
Iron ore contract prices for the local steelmakers more than doubled to $150 a ton this year after a surge in demand from India and China, the world’s two fastest growing major economies. Lower supplies from India, the third-largest exporter, which mainly ships to China, and adverse weather in Australia and Canada, may further push up global prices, BNP Paribas analysts Alok Rawat and Karan Gupta said in a report on Jan. 12.
Indian steel demand, which rose about 8 percent in the last fiscal year, is forecast by the government to grow 10 percent in the year ending March 31, helped by state spending on roads, ports and bridges.
“A decision to ban exports can only be taken by the government of India,” Mohanty said. “We can give a proposal to the centre asking for a ban.”
Source: Bloomberg
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