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ShareUrge ban on export of iron ore with ferrous content above 62%
KOLKATA: With the contentious issue of steel prices returning to the limelight, can iron ore be far behind?
Even as the government hints at a possible increase in export tax from 15% to 20-25%, steel makers assert that exports of iron ore with ferrous content above 62% should be banned. They also feel that exports of iron ore below 62% ferrous content should be regulated and canalised by the Indian government and be phased out eventually.
These issues are related to the justification steel companies are giving for increasing prices in the wake of rise in iron ore lump prices in the domestic market.
On the other hand, the government, which seems to be working on a quid pro quo basis, may be eager to offer some sops so steel manufacturers don't hike prices. Though global cues suggest softening of prices, India, which has a huge demand, may not see price cuts.
D S Rawat, the secretary general of industry body Assocham, on Tuesday said the body had sent a letter last week to the finance and commerce ministers, urging them to urgently increase the duty on iron ore exports.
An official with a steel company said India needs about 700-750 million tonne of iron ore to meet an annual steel production of about 500 million tonne. "India's exports of iron ore have grown three-fold to 90 million tonne in the last 7-8 years. If exports are not phased out, India's reserves would last only 20-25 years," the official said.
India, along with China, Brazil and Australia, is in the list of the largest iron ore-producing nations.
g_nandini@dnaindia.net
