Iron ore rail freight set to increase 5%
Freight cost for iron ore is set to increase following the reclassification of products by the Railways. The move would increase the transportation charges of iron ore by about 5-6%.
By Subhash Narayan, TNN |
NEW DELHI: Freight cost for iron ore is set to increase following the reclassification of products by the Railways. The move would increase the transportation charges of iron ore by about 5-6%.
As iron ore price makes up 30% of steel cost, higher freight could further impact prices of the alloy that have risen by a third in the past few months.
The Railways, however, cut port congestion surcharge from 60% to 30% (levied on ore moving from source to ports) on ore meant for domestic use, while increasing the surcharge for ore meant for exports to 100% with immediate effect.
���The move would further push up input cost for steel makers,��� an official of a large private sector steel company said.
As iron ore price makes up 30% of steel cost, higher freight could further impact prices of the alloy that have risen by a third in the past few months.
The Railways, however, cut port congestion surcharge from 60% to 30% (levied on ore moving from source to ports) on ore meant for domestic use, while increasing the surcharge for ore meant for exports to 100% with immediate effect.
���The move would further push up input cost for steel makers,��� an official of a large private sector steel company said.
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