India likely to set floor price for iron ore exports
According to recent news in the market, Indian government is considering to set floor price on
iron ore exported from the country in order to prevent misuse of the current
iron ore export policy by certain firms.
As previously reported by SteelOrbis, Indian government announced that it would take certain measures to prevent misuse of the current policy. The government announced that it was considering to restrict export of
iron ore above 62% Fe. Another option put forward by the government is to set a floor price on
iron ore exported from the country.
The exporters reportedly get payment for
iron ore in advance and give a discount of $5 per ton to buyers abroad, which creates huge demand.
As a result of increasing exports, country's ports are congested, affecting shipment of the other products negatively. Under these circumstances, the government is expected to fix a floor price for
iron ore exports.