62% drop in iron ore exports to China

NEW DELHI: India has slipped from being the fourth largest exporter of iron ore to China last year to tenth for the seven-month period between April and October 2013 — a drop of 62% in the country’s exports to China from the comparative period in 2012. Between April and October this year, India exported 7.2 million tonnes of iron ore to China, which is less than Ukraine’s (10.2mt), Sierra Leone’s (7.73 mt) and Canada’s (7.6mt), according to metal analysts Ore Team.

India had exported close to 19 million tonnes in the same period, last year. “India’s losing its position in the exports market, and is being overtaken by countries like Iran, S Africa, Indonesia and Canada who are expected to increase their volumes. But on the other hand, there are few countries such as Bulgaria, Eritrea and Sudan which are becoming favourites with the Chinese importers despite their small tonnages,” says the report.

A ban on exports from Karnataka and with no mining in Goa, which sold most of its low-grade fines to China, India has slipped in the exporters’ rankings. Even countries like Iran (13mt) and Indonesia (10.3mt) have surged ahead of India. Australia with 250 mt, Brazil with 86 mt and South Africa with 27 mt are the top exporters of iron ore to China.

Earlier this year, finance minister P Chidambaram had ruled out a roll back on the 30% duty on iron ore exports despite a demand for a reduction of duty to 20% to revive exports and help reduce the current account deficit.