India likely to set floor price for iron ore exports

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.