As per the provisional figures of the Federation of Indian Mineral Industries (FIMI), India's iron ore exports increased by nearly 16.8 percent to 12.63 million mt in February 2009 compared to 10.81 million mt in the same month of the previous year, mainly on account of improved demand from Chinese steel mills.
During the April-February period of FY 2008-09, Indian iron ore exports rose marginally by 1.3 percent to 91.65 million mt compared to 90.48 million mt in the year-ago period.
According to the FIMI data, although India's iron ore shipments increased in February, both demand and the price of the iron ore started plummeting in the spot market from March as steel plants were not operating at optimum capacities.
"March has been the worst for miners as demand, which was on the rise from steel mills until February, has fallen along with prices of iron ore. Selling at around $58/mt in November last year, Indian iron ore is now ruling at $47/mt in the international spot market," FIMI president Rahul Baldota said.
The FIMI data showed that India's exports of iron ore slumped 23 percent year on year in August when demand from China dried up as many mills closed for the Olympics.
India's iron ore exports were up by 38 percent in December and have remained strong as China built up inventories ahead of the annual negotiations between steel mills and iron ore suppliers to set benchmark prices this month; however, exports could fall once negotiations have been concluded.