Friday, October 2, 2009

Indian Iron Ore Exports Rise On Increased China Demand

India’s iron ore exports rose 1.7 per cent in the April to August period because of higher demand from steel makers in China, the biggest buyer of the raw material, an Indian mineral industry group said.

Overseas sales increased to 37.08 million tonnes in the five months ended August 31 from 36.47 million tonnes a year earlier, the Federation of Indian Mineral Industries said in a statement. Sales in August rose 40 per cent to 6.28 million tonnes from 4.49 million tonnes a year earlier and were little changed from 6.29 million tonnes in July.

China’s steel makers are buying more iron ore as the government has implemented a $586 billion stimulus package to revive growth. China’s economy is forecast to expand 8.2 per cent this year, compared with a March estimate of 7 per cent, the Asian Development Bank said last month, easing concern that the nation may slow raw-material imports.

China may buy 20 per cent more iron ore than forecast next year, Canberra-based Australian Bureau of Agricultural and Resource Economics said on September 22. China may import 637 million tonnes of iron ore in calendar 2010, compared with its June prediction of 529 million tonnes, it said.

Source: Business Standard

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