India removes specific export duty on iron ore fines, imposes eight percent ad-valorem duty

Reports from India indicate that the Indian Ministry of Finance has withdrawn an export tax of Rupees 200/mt ($4.2/mt) on iron ore fines and instead imposed an eight percent ad-valorem duty (value-based duty) on the subject raw materials.
 
The adjustment is foreseen to give a certain relief to the industry, which is under pressure due to weak demand and declining prices.
 
On October 31, the Indian Ministry of Finance announced that the 15 percent export duty on iron ore fines would be replaced by a specific duty of Rupees 200/mt ($4.2/mt); however, the 15 percent export duty on iron ore lumps would remain unchanged.
 
Nevertheless, according to the Chinese traders, at the time of the previous adjustment on October 31, the specific export duty of Rupees 200/mt ($4.2/mt) on iron ore fines would have little effect since it would fail to modify the iron ore supply situation and the change would not bring forward a significant cost difference.