Bloomberg reported that India’s iron ore exports in January rose for the second straight month as China, the world’s largest consumer of the steel making raw material, increased purchases.
The Federation of Indian Mineral Industries, a group of iron ore miners in a statement said that shipments increased to 13.9 million metric tonne from 11.5 million tonne a year earlier. Shipments in the 10 months ended January fell 1.5%.
China’s plan to spend CNY 4 trillion on housing, railroads and other infrastructure projects is reviving demand for steel in the country. China purchases most of its iron ore for immediate delivery from India.
Mr PK Mukherjee MD of India’s biggest iron ore exporter Sesa Goa Ltd said that “The smaller units in China are buying iron ore on expectation of a rebound in steel demand. Also, companies are buying as stockpiles have fallen.”
Mr RK Sharma secretary general of the Federation of Indian Mineral Industries said that India’s iron ore exports in December surged 38%, the first gain in 8 months. Export prices are expected to double to USD 90 a tonne from last year’s low of USD 45, on February 10th 2009.
Source : Bloomberg