Goa’s iron ore exports are slowly witnessing a recovery, raising hopes of touching the export figure of last year.
Exports last year reached 40 million tonnes, 33.5 million tonnes of which ore was of Goan origin and the rest from neighbouring States routed through Goa. Goa’s last year’s export turnover was put at around Rs 65billion.
Though much of the recovery is given to revival of China’s steel industry due to a financial package by its Government, the Goan industry attributes equal significance to the Union Government’s recent decision to scrap the duty on certain categories of iron ore exports, particularly low- grade ore. Around 80 per cent of Goa’s ore exports fall under low-grade category.
The State’s private sector exporters had last year reached exports of 37 million tonnes. After fearing a near fall of around 30 per cent during the current year, the Goa Ministeral Ore exporters’ Association (GMOEA), the body representing the iron ore exporters, is now confident that they may reach last year’s figure.
Sources in export companies said that while there has been a perceptible change in China’s intake, the same cannot be said about Japan and some of the European markets.
Factors behind the sudden rush for iron ore export to China are believed to be a $50 billion bailout plan by Beijing and the fact that its steel industry has begun importing iron ore as prices are at their lowest for some time.
Source: The Hindu Business Line
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