Iron ore exports from India fell to “near zero” in October, and overseas shipments of the steelmaking raw material are expected to remain stagnant due to higher export taxes and lower demand from China, according to a senior industry official.
As part of efforts to meet rising domestic demand, India raised the export tax on low-grade iron ore lumps and fines containing less than 58per cent iron content to 50per cent from zero in May and increased the duty on pellets to 45per cent from zero.
“Exports were nearly zero in October, and they will remain so as long as the duty is in place,” R.K. Sharma, secretary-general of the Federation of Indian Mineral Industries (FIMI), said in an interview. Aside from New Delhi’s higher export taxes, Sharma predicted that an economic slowdown in China, India’s top buyer of iron ore, would reduce overseas shipments of the steelmaking ingredient.
He claimed that Beijing’s COVID-19 tariffs would have an impact on India’s iron ore shipments. According to Sharma, China’s steel production may fall in the winter, reducing demand for iron ore. However, global iron ore prices have recovered after a fall in October, with gains largely driven by speculation that China will abandon its “zero COVID” policy by next year. Officials have denied any knowledge of such a scheme. China purchased 21 million tonnes of iron ore and concentrates from India in the fiscal year ending March 2022, effectively purchasing 80per cent of New Delhi’s total exports of 26.32 million tonnes. Low-grade ores accounted for 92per cent of total iron ore exports from India.
