In January 2009 India's iron ore exports rose by 21.53 percent to 13.9 million mt, compared with 11.5 million mt in January 2008, according to the study conducted by Minerals and Metals Trading Corp, Goa Mineral Ore Exporters Association and Indian state-owned iron ore pelletizer Kudremukh Iron Ore Co.
According to the study report, the depreciation of the rupee has compensated for the impact of the five percent export duty on Indian iron ore. As a result, iron ore exports have been climbing since December 2008, led especially by rising demand from China.
"Iron ore FOB prices had fallen to $60-65/mt in December which made Indian ore attractive. Chinese steelmakers bought iron ore in bulk, which is showing in higher iron ore export figures. However, demand for iron ore will be bleak for some time as Chinese steelmakers are sitting on huge stocks," independent steel and natural resources consultant AS Firoz commented.
However, Federation of Indian Mining Industry (Fimi) president Rahul Baldota expects a decline in exports in March 2009: "We don't foresee a sharp increase in demand for iron ore from China at least for a few months. Iron ore exports started moving southward from the end of February and will continue to fall in March as well."