Author: Paul Ploumis09 Jul 2014 Last updated at 03:19:18 GMT
NEW DELHI (Scrap Monster): The iron ore exports from India declined sharply during the first quarter ending June 30th, according to data compiled by Delhi-based OreTeam Research. The total exports during the quarter plunged 40.5% to total 1.93 million tonnes (mt). The exports during the corresponding quarter last year had totaled 3.26 mt.
As per data, the ore exports totaled 1.08 mt during April ’14. The exports witnessed huge fall during the subsequent months. The exports in May ’14 and June ’14 totaled 0.581 mt and 0.277 mt respectively.
According to R K Sharma, Secretary General, Federation of Indian Mineral Industries (FIMI), the high export duty in the country makes it unviable for miners to export ore, whose prices are currently low in international market. Also, mining ban in Odisha led to surge in domestic ore prices. This forced miners to sell their stocks in domestic market. Moreover, Chinese buyers were seen not booking shipments owing to high stockpiles at ports.
Industry participants urged the government to reduce the export duty on ore from Goa. This will foster the exports of low-grade ore to China. In addition the railways should take necessary steps to reduce the freight rates for exports and make it equivalent to those for domestic shipment.
Currently, iron ore fines and lumps are charged 30% export duty. The high export duty coupled with mining ban in key mining states of the country has brought the country’s exports down from 117 mt in 2009-’10 to 14 mt in 2013-‘14