For the fourth month in a row, iron ore exports jumped 118 per cent in October on strong Chinese demand. Total exports jumped to 9.33 million tonnes compared with 4.26 million tonnes in the corresponding month last year. In September, exports had surged a staggering 72 per cent to 5.7 million tonnes as compared to 3.32 million tonnes in the same month previous year.
With this, the total shipments of Indian ore recorded a rise of 20.8 per cent to 53.23 million tonnes in the first seven months of the current financial year as compared to 44.06 million tonnes in the same period this financial year.
During the first three months of the current financial year, exports of the steel-making raw materials remained in doldrums as Chinese steel mills were awaiting final decision on long term contracts with the world’s three miners — BHP Billiton, Vale and Rio Tinto. These companies have been long term suppliers of iron ore to China. However, Chinese steel mills procure raw material from India on spot basis to fill the supply gap from other the aforementioned three companies.
Additionally, Chinese mills were also delaying complete utilisation of steel making capacity amid apprehensions of a possible slowdown in construction activities due to global financial meltdown. But, the shadow has been reduced gradually and China is working toward meeting its planned 600 million tonnes of steel production target for this year as against 500 million tonnes last year.
Source : Business Standard