India’s Iron Ore Exports Fall for Seventh Consecutive Month.

Iron ore shipments from India, the world’s third largest exporter, fell for a seventh consecutive month in January due to a ban on overseas sales from the southern state of Karnataka and higher taxes on shipments.

Exports dropped 24.4 percent to 10.7 million metric tons, the Federation of Indian Mineral Industries said in an e-mailed statement today. Exports in the April-to-November period fell 18.1 percent to 75.1 million tons.

India raised export taxes on ore lumps last year to 15 percent from 10 percent. Karnataka banned iron ore exports in July to increase supplies of the steelmaking ingredient. The Indian government plans to raise duties on shipments of all grades of iron ore to 20 percent from April 1, Finance Minister Pranab Mukherjee said in his budget proposal yesterday.

Shipments from the state of Goa fell 6.5 percent to 7.2 million tons in January, while exports from the southern city of Chennai fell to 11,000 tons from 688,000 tons a year earlier, the statement said.

The Federation’s President Siddharth Rungta yesterday said India may export 85 million tons of ore in the year to March 31, higher than an August forecast of 66 million tons. Indian miners gained from a surge in demand from China and a supply shortfall because of inclement weather in Australia and Brazil.

Source : bloomberg.com