NEW DELHI: On the back of rising demand from China, the country's iron ore exports jumped 39% to 13.6 million tonne in December, 2008 against 9.8
million tonne in the same month a year ago.
This was brought out by a study conducted jointly by Minerals & Metals Trading Corporation, Goa Mineral Ore Exporters Association and Kudremukh Iron Ore Company.
But for the first nine months of the financial year exports are lower. Total exports during April-December, 2008 dipped 5.4% to 64.4 million tonne against 68.1 million tonne in the corresponding period last financial year.
India s annual iron ore production, a key input in steel making, is more than 200 million tonne, of which about 50% is exported. Globally, demand for steel has grown marginally in the last few weeks.
Some of the Chinese steel mills that had shut down as a result of low demand have now increased their production levels. This has in turn pushed up demand for the Indian ore, said Federation of Indian Mineral Industries president Rahul Baldota.
Besides, the government s move to reduce export duty on iron ore lumps from 15% to 5% has also boosted exports, Mr Baldota said adding that reduction in railway freight has also helped the domestic iron ore miners in a big way.
Source : The Economic Times