The Indian government has raised its iron ore export duty from 20 percent to 30 percent, both on iron ore fines and lumps, according to media reports. This export duty hike is expected to increase local iron ore prices and to contribute to reducing iron ore export shipments. The revised export duty has become effective as of December 30, 2011.
The local steelmaker JSW Steel's shares have jumped since iron ore will be more easily available to the company, while shares of Sesa Goa and NMDC, domestic iron ore producers, have dropped down by 3.5-5.2 percent.
As SteelOrbis previously reported, JSW Steel had to reduce its steel production to 30 percent of its capacity at its Vijayanagar plant due to the abrupt disruption of iron ore supplies.