In­dia to be­come a ma­jor iron ore im­porter

Cargo Talk - - Cargo News -

In­dia is likely to im­port 10 mil­lion tonnes (mt) in FY15, over three times its pre­vi­ous record of 3 mt in FY13.

Ac­cord­ing to a Fed­er­a­tion of In­dian Min­eral In­dus­tries’ survey, the in­crease in im­ports can be at­trib­uted to un­sta­ble do­mes­tic pro­duc­tion, an in­crease in roy­alty rates and lower prices in the global mar­ket. Do­mes­tic pro­duc­tion has been steadily de­clin­ing from a high of 220 mt in FY10 to 150 mt in FY14. Ac­cord­ing to a se­nior FIMI of­fi­cial, im­ported ore has less alu­mina and sil­ica, mean­ing steel mills end up us­ing lesser coke and fuel and achieve 20 per cent higher re­cov­ery of steel.

“It is for this rea­son the steel sec­tor might in­crease im­ports. Spot prices are $ 90 a tonne and an­a­lysts say th­ese will go down $ 5-10 a tonne by Jan­uary,” he said.

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