NEW DELHI: Iron ore exports increased 17% to 12.6 million tonnes in February 2009 from 10.8 million tonnes in the same month a year ago, backed
by a moderate revival in demand from Chinese steel producers, as per the latest data compiled by a group of top Indian mining firms.
Exports of iron ore, a key input in steelmaking, had picked up in December 2008 after registering negative growth for seven consecutive months, as per data compiled earlier by the same mining group—Minerals & Metals Trading Corporation, Goa Mineral Ore Exporters Association and Kudremukh Iron Ore Company.
Iron ore exports in February were lower compared to January, but analysts feel that exports will remain stable this fiscal as the Chinese steel industry has started showing signs of revival.
“The October-November period was bad for domestic iron ore companies as they were not finding buyers overseas. With a marginal revival in demand, purchases started picking up from December and are reflecting strongly in the January export figures,” said consulting firm Ernst & Young partner Naveen Vohra.
But as per the Federation of Indian Mineral Industries (FIMI), the demand for iron ore will slump in the short term as Chinese steelmakers are again going slow on buying ore in anticipation of a further fall in prices. Moreover, most of them are sitting on huge inventories, it added.
India produces about 200 million tonnes of iron ore every year, half of which is exported.
Source : The Economic Times