Indian sponge iron producers have urged the Indian government to impose duties on exports of low-grade iron ore to stave off shortages of the main raw material, according to a statement from the Sponge Iron Manufacturers’ Association (SIMA) on Thursday, March 21.
“We have urged the government that there is a shortage of iron ore, (so) please intervene and levy export duty,” Rahul Mittal, chairman of SIMA, said in the statement.
He said a sharp jump in iron ore exports has exacerbated shortages in recent months.
Sponge iron producers have been raising concerns about supplies since the government in November 2022 scrapped the higher export tax on low-grade iron ore lumps, fines and pellets, reversing the May 2022 decision, he said.
India’s iron ore exports touched 32.2 million mt during the nine month period of April-December of the fiscal year 2023-24, up from 9.5 million mt in the corresponding period of the previous year.
India, the world's biggest sponge iron producer, has about 336 sponge iron plants spread across the country producing around 50 million mt per year.
Mr. Mittal said that sponge iron output is expected to grow 15 percent in the fiscal year 2024-25, and the rising requirement of iron ore needs to be backed up by sufficient domestic supplies by the imposition of export duty on lower grade iron ore.
