Spot Iron ore prices remain unchanged at $143-146/MT CFR
China on Saturday with very few trades taking place as the holiday mood sets in.
Rumors about a hike in export duty of Iron ore have created a panic among the
market players.
However, there is no confirmation from the Steel ministry
about any such hike immediately though they have such a proposal to hike the
export duty to 30 per cent from the current 20 per cent, which will be
sent to the finance ministry for its approval and implementation later in the year
2012.
The previous hike in export duty to 20% was not appreciated
by the iron ore industry and exports of iron ore declined by about 22% to 25.2
million tonnes in April-July to the corresponding period last fiscal. Exports
in the Aug-Nov period declined further to reach 14.8 million tonnes.
Industry bodies such as the Federation of the Indian Mineral Industries(FIMI) expect iron ore exports to
fall further in 2012 if the export duty is hiked to 30%.
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