October 27 MetalBiz--India Steel Ministry expected to adopt a new policy to improve the added value on export products.
The body believed that iron ore export tariffs should be raised firstly. Virbhadra Singh, minister from India Steel Ministry said in an interview that India, as a large iron ore producing country, it most products were exported at a low price, thus the country should issue a new policy to help improve added value on export products to obtain greater benefits. He has proposed to increase iron ore export tariff, but did not elaborate the margin. Singh has encouraged state-owned enterprise-NMDC to establish steel mills to produce high value-added products. India SAIL is trying to process its own ore for directly supplying subsidiary mills, replacing cheap sales.
India can produce 155mln tons of iron ore annually, thereinto, about 89mln tons is for exports and vast majority is exported to China. Steel Ministry said that India government should gradually stop exporting high-grade iron ore to supply domestic steel mills. Last year, India once raised the tariff on powder ore and lump ore by 8% and 15% respectively, which the focus of the government's argument lies in whether to issue an export restriction policy such as China's coke exports.
India's steel enterprises support the government's view and believe steel mills need more iron ore resource to complete the target in 2011, an 85mln tons of finished steel. In contrast, the data from India's mining company showed that India's iron ore resource can satisfy exports and domestic demand. The related experts in India generally thought that government should amend the export policy of raw materials, while consultants from Planning Commission of India once proposed to do exchange between iron ore and coking coal.
Presently, the per capita steel consumption in India is only 35 kg and is expected to increase to 300 kg in 2010. India's government stressed that any long-term strategy should take individual steel consumption into account. Externals consider India is formulating a compromising policy to ban export with restricting import.
Another high-quality iron ore producer-Vale is also considering increasing the export tariff on ore.
Source : MetalBiz