Business Standard

MMTC inks supply pacts with Japanese, South Korean steel cos

Under the pact, MMTC will supply 2.3 MT of iron ore per annum to five Japanese firms including Nippon Steel Corporation & Posco

Press Trust of India  |  New Delhi 

State-owned trading giant has inked pacts with Japanese and South Korean steel companies including Posco, to supply 2.8 million tonnes of iron ore annually for a period of three years.

"We have signed iron ore supply contracts with five Japanese firms and one South Korean company for a period of three years. The exports are expected to start from July this year," an official told PTI.

Under the pact, will supply 2.3 MT of iron ore per annum to five Japanese firms including Nippon Steel Corporation, JFE Steel Corporation and Nisshin Steel besides 0.5 MT to South Korean major Posco, the official said.

An official delegation of had visited Tokyo and Seoul this month to sign contracts with the firms.



The Cabinet, in March, had approved export of iron ore by to Japanese and South Korean for three more years.

The supply of iron ore, although in smaller quantities, has been a core element in the bilateral ties with Japan and South Korea and would further strengthen the relations, the official said.

would supply iron ore (lumps and fines) of grade (plus) 64 Fe, or high grade content, to Japanese and Korean from country's largest iron ore miner NMDC's Baildila mines in Chhattisgarh.

MMTC's earlier contract to supply iron ore for five years to Japanese and Korean had expired on March 31, 2011 and was pending as price negotiations had not taken place.

India, the third-largest global exporter of iron ore, had exported 97.64 MT iron ore in the 2010-11, down from 117.3 MT in 2009-10. The figure for the 2011-12 is estimated at about 60 MT on account of less production due to ban in Karnataka.

India's iron ore exports are likely to decline to 50 MT in the current fiscal, as per the miners' body Federation of Indian Mineral Industries (FIMI) estimates.

Iron ore shipments from Karnataka, a major exporter of the raw material from the country, have been stopped since July, 2010, following allegations of widespread corruption.

Also, the exports were impacted after the government had hiked the export duty on iron ore to 30% in December last year from 20%.

Freight on iron ore for domestic consumption was increased by 20% early in March while the rates were reduced by 16% on ore exports.

RECOMMENDED FOR YOU

MMTC inks supply pacts with Japanese, South Korean steel cos

Under the pact, MMTC will supply 2.3 MT of iron ore per annum to five Japanese firms including Nippon Steel Corporation & Posco

State-owned trading giant MMTC has inked pacts with Japanese and South Korean steel companies including Posco, to supply 2.8 million tonnes of iron ore annually for a period of three years.

State-owned trading giant has inked pacts with Japanese and South Korean steel companies including Posco, to supply 2.8 million tonnes of iron ore annually for a period of three years.

"We have signed iron ore supply contracts with five Japanese firms and one South Korean company for a period of three years. The exports are expected to start from July this year," an official told PTI.

Under the pact, will supply 2.3 MT of iron ore per annum to five Japanese firms including Nippon Steel Corporation, JFE Steel Corporation and Nisshin Steel besides 0.5 MT to South Korean major Posco, the official said.

An official delegation of had visited Tokyo and Seoul this month to sign contracts with the firms.

The Cabinet, in March, had approved export of iron ore by to Japanese and South Korean for three more years.

The supply of iron ore, although in smaller quantities, has been a core element in the bilateral ties with Japan and South Korea and would further strengthen the relations, the official said.

would supply iron ore (lumps and fines) of grade (plus) 64 Fe, or high grade content, to Japanese and Korean from country's largest iron ore miner NMDC's Baildila mines in Chhattisgarh.

MMTC's earlier contract to supply iron ore for five years to Japanese and Korean had expired on March 31, 2011 and was pending as price negotiations had not taken place.

India, the third-largest global exporter of iron ore, had exported 97.64 MT iron ore in the 2010-11, down from 117.3 MT in 2009-10. The figure for the 2011-12 is estimated at about 60 MT on account of less production due to ban in Karnataka.

India's iron ore exports are likely to decline to 50 MT in the current fiscal, as per the miners' body Federation of Indian Mineral Industries (FIMI) estimates.

Iron ore shipments from Karnataka, a major exporter of the raw material from the country, have been stopped since July, 2010, following allegations of widespread corruption.

Also, the exports were impacted after the government had hiked the export duty on iron ore to 30% in December last year from 20%.

Freight on iron ore for domestic consumption was increased by 20% early in March while the rates were reduced by 16% on ore exports.

image
Business Standard
177 22

MMTC inks supply pacts with Japanese, South Korean steel cos

Under the pact, MMTC will supply 2.3 MT of iron ore per annum to five Japanese firms including Nippon Steel Corporation & Posco

State-owned trading giant has inked pacts with Japanese and South Korean steel companies including Posco, to supply 2.8 million tonnes of iron ore annually for a period of three years.

"We have signed iron ore supply contracts with five Japanese firms and one South Korean company for a period of three years. The exports are expected to start from July this year," an official told PTI.

Under the pact, will supply 2.3 MT of iron ore per annum to five Japanese firms including Nippon Steel Corporation, JFE Steel Corporation and Nisshin Steel besides 0.5 MT to South Korean major Posco, the official said.

An official delegation of had visited Tokyo and Seoul this month to sign contracts with the firms.

The Cabinet, in March, had approved export of iron ore by to Japanese and South Korean for three more years.

The supply of iron ore, although in smaller quantities, has been a core element in the bilateral ties with Japan and South Korea and would further strengthen the relations, the official said.

would supply iron ore (lumps and fines) of grade (plus) 64 Fe, or high grade content, to Japanese and Korean from country's largest iron ore miner NMDC's Baildila mines in Chhattisgarh.

MMTC's earlier contract to supply iron ore for five years to Japanese and Korean had expired on March 31, 2011 and was pending as price negotiations had not taken place.

India, the third-largest global exporter of iron ore, had exported 97.64 MT iron ore in the 2010-11, down from 117.3 MT in 2009-10. The figure for the 2011-12 is estimated at about 60 MT on account of less production due to ban in Karnataka.

India's iron ore exports are likely to decline to 50 MT in the current fiscal, as per the miners' body Federation of Indian Mineral Industries (FIMI) estimates.

Iron ore shipments from Karnataka, a major exporter of the raw material from the country, have been stopped since July, 2010, following allegations of widespread corruption.

Also, the exports were impacted after the government had hiked the export duty on iron ore to 30% in December last year from 20%.

Freight on iron ore for domestic consumption was increased by 20% early in March while the rates were reduced by 16% on ore exports.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard