Indian iron ore spot prices at US$200/t or so
May 26, 2008
May 26 (Iron Ore Daily Post) – From about US$140/t in January this year, Indian iron ore spot prices are said to be reaching over US$200/t. India’s government now could revive the proposal to hike country’s iron ore export taxes.
The Indian newspaper The Telegraph says “Top officials said that a fresh proposal to replace a fixed nominal cess on ore export with a tax of 6-8 per cent of the value of export (ad valorem tax) might be on the government’s agenda. An earlier proposal to slap a 15 per cent tax on the value of export had been rejected after several rounds of meetings of a group of ministers, following objections by the commerce ministry. The commerce ministry was opposed to an increase in the tax because it would kill exports with ore firms making long-term commitments to buyers from abroad.”
India exports about 90m t/year of iron ore, almost 75m t/year only to China’s steelmakers.
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