Indian iron ore exporters fear
losing further ground in China, their key market, because of latest hike in
export duty on iron ore to 30%. Global giants such as Vale, BHP Billiton and
Rio Tinto are expected to reap benefits from the duty hike and erode India's
market share in China, industry sources said.
“Exports will drop and India will
now have no say in the global market,” said Mr R. K. Sharma, Secretary-General,
Federation of Indian Mineral Industries (FIMI), voicing concern over the duty
hike.
The latest duty hike, the second
such move in the current fiscal, has come as a blow to the exporters, who were hoping
to gear up for the traditional peak export season of January-April.
The Indian iron ore exports have
already slowed in the past two years on duty hikes and rise in freight, besides
being impacted by the curbs imposed by States such as Karnataka to contain
illegal mining.
In the April-November period this
fiscal, exports have shrunk by 28% to reach 40 million tonnes over the
corresponding year-ago period.
“We might do another 5 or 10
million tonnes for the remaining part of the year. Only some exports might
happen from Goa, where it is transported through the rivers,” said Mr Sharma
said.
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