The Federation of Indian Mineral Industries (FIMI) envisages a slowdown in China’s import of iron ore, partly due to constraints from domestic factors such as an increase in the cost of rail freight and restriction by ports in handling ore.
FIMI said the export of ore from India could drop by 10% to 15% a year with China resorting to indirect import restrictions because of the completion of its infrastructure projects, including those for the Beijing Olympics.
Mr DV Pichamuthu director (southern region) of FIMI said that Indian Railway freight rates have gone up by 45% and coupled with the shortage of rakes, exporters were feeling the pinch of the slowdown with prices also going down.
Mr Pichamuthu said that FIMI is against export restriction on iron ore. Stating there was no shortage of ore for domestic steel makers, he said even leading steel companies with captive mines produce in excess of their requirement and export surplus ore.
He said the steel companies had no reason to demand a restriction on exports. He added that it is only the low grade ore that was being exported and that the steel makers do not use this material.
FIMI demanded early amendments to the Mines and Minerals (Development and Regulation) Act to give effect to the provisions of the New Mineral Policy to attract more investments in the sector.
Source: Steel Guru
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