India’s iron ore exports continue to rise

In the first ten months (April 2009-January 2010) of the current Indian fiscal year, India's iron ore exports surged by 10.47 percent year on year, amounting to 89.27 million metric tons.

However, in December 2009 and January 2010 decreases were witnessed on year-on-year basis following significant growth rates recorded in the previous months. This change in trend can possibly be explained by the hike in export duty on iron ore, which became effective as of December 24, 2009. Meanwhile, in January this year the country's iron ore exports rose for the fourth consecutive month on month-on-month basis and reached the highest monthly volume recorded since February 2009.

As SteelOrbis previously reported, the Indian government raised the export duty on iron ore lumps to 10 percent from five percent and upped the export duty on iron ore fines to five percent from zero. Following the increase in export duty, the Federation of Indian Mineral Industries (FIMI) stated that it expects India's iron ore exports to decline by about six million metric tons this fiscal year.

In a statement it has released today, India's Ministry of Steel said, "The ministry has recommended export duty on iron ore with a view to conserving this precious raw material for long-term utilization of the domestic steel industry and for continued availability of iron ore to domestic steel units at an affordable price."