With iron ore prices corrected over 30% in August -September in global market, industry experts say that imported offers of iron ore to India are very competitive than domestic market.
“Steel plants based on coastal region are primarily interested in importing iron ore as logistical cost is quite low. South African 10-40 mm iron lumps of grade 64% Fe and silica around 4-6% is offered in the range of $114-117/t CFR Indian east coast few days back. Similarly there are offers from Brazilian miners too.” said an Industry veteran based in Mumbai.
At the same time he mentioned that importing iron ore will not be an option for Indian steel makers looking at fast growing pellet plants in India.
Indian government has kept import duty of 2.5% unchanged on pellets and iron ore in order to safeguard domestic industry.
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