India’s export of iron ore in 2012-13 is estimated to have declined 69 per cent to 18 million tonne (mn t) from 61.8 mn t in the previous year.
Data from the Federation of Indian Mineral Industries (FIMI) shows the country exported 16.3 mn t of the steel-making raw material between April 2012 and January 2013. This is a fall of 68 per cent compared to the corresponding period in the previous year.
FIMI does not expect iron ore export to rebound in the coming months given the current price scenario in the international market and the high export duty and rail freight charges. The government imposes 30 per cent export duty on iron ore.
The decline in export is partly attributed to the fall in mining activity in Goa and Karnataka. Further, the continued restriction in Odisha has contributed to the slowdown in or exports.
Meanwhile, some domestic steel makers plan to import iron ore from abroad in order to meet their raw material requirement.
For example, JSW Steel plans to import about 5 mn t of iron ore from Australia and South America for its port-based steel plants in Dolvi and Salem this year. Essar Steel is also considering importing ore.
Some analysts expect domestic steel firms to import about 5-10 million tonne of iron ore in 2013-14. Mainly port-based steel firms may import the raw material as it is not feasible to import ore for a non-port based steel plant.
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