Indian Iron Ore Exports To Fall In March

India’s iron ore exports are expected to fall in March as China reduces purchasing after stockpiles rose.

Mr Rahul Baldota president of the Federation of Indian Mineral Industries said that “Demand has dried up since the last week of February 2009. Indian iron ore prices have fallen by USD 15 a tonne from USD 85 a tonne in February 2009."

The federation reported that the number of ships waiting to unload imported iron ore at ports in China surged 50% in February from a month earlier due to lower demand. Indian exports in December and January had increased on higher Chinese purchase.

Mr Baldota said that “We are going back to the September to October levels. In February we may clock slightly higher sales but it’s a definite fall in March.”

According to the federation, in October Indian iron ore exports slumped to 1.5 million tonnes from 8 million tonnes a year earlier.

The China Iron and Steel Association on February 23rd said that benchmark steel prices in China have fallen 12% since February 4 after mills increased output on expectation of demand coming from the government’s CNY 4 trillion stimulus package. More than 60% of Chinese mills are still losing money.

Source: Steel Guru