FIMI sees 15% drop in Indian iron ore export to China

June 8, 2008

June 8th (Steel Guru) – Federation of Indian Mineral Industries envisages a slowdown in China’s import of iron ore, partly due to constraints from domestic factors like increase in rail freight rate and restriction by ports in handling ore.

FIMI said that trade was already feeling the signs with the off take tapering off. It said the export of ore from India could drop by 10% to 15% a year with China resorting to indirect import restriction because of completion of its infrastructure projects, including those for the mega sporting event, the Beijing Olympics.

Mr DV Pichamuthu director (southern region) of FIMI said that Indian Railway freight rates have gone up by 45% and coupled with the shortage of rakes, exporters were feeling the pinch of the slowdown with prices also going down.

Mr Pichamuthu said that FIMI is against export restriction on iron ore. Stating there was no shortage of ore for domestic steel makers, he said even leading steel companies with captive mines produce in excess of their requirement and export ore.

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