Few weeks ago,Indian steel minister in a statement mentioned that ” there is no shortage of iron ore in India.” Question is, with domestic production of 169 million tonnes of iron ore, why are steel mills still importing it?
Recently a major steel mill on west coast heard to have imported iron ore lumps from Australia.
Current Scenario:
1. Indian government's measures to curb illegal mining has led to closure of mines in states like Karnataka, Odisha and Goa.
2. NMDC unwilling to sell its iron ore at low prices, industry experts believe current iron ore prices are unrealistic high.
3. Big players like JSW , Essar and RINL are primarily dependent on ore supplied by NMDC. They are left with no other option but to import if international offers are competitive.
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