Iron ore exports down 47% at 3 mn tn in Sept

Witnessing the steepest fall this fiscal, iron ore exports in September went down by 47.46 per cent to 3.02 million tonnes due to the ban imposed by mineral-rich Karnataka on iron ore shipments and extended monsoon in the country.

"The decline, biggest this fiscal, is mainly due to the Karnataka ban and the prolonged monsoon season," FIMI Secretary General R K Sharma said.

According to the data compiled by industry body FIMI, the country shipped 5.7 million tonnes of iron ore in the same period last year.

India, the world's third largest iron ore exporter, had produced 218 million tonnes of iron ore in the last fiscal and exported almost half of it.

Of the total exports, more than 80 per cent went to China, the world's largest steel producer. Iron ore is a vital steel making raw material.

Karnataka had during the last quarter announced banning exports of iron ore from some of its ports in an attempt to curb illegal mining of the mineral in the state.

On the outlook, Sharma said the demand has improved and so the prices.

"As of now, there is demand in China. But there is problem in the supply chain due to Karnataka ban and also logistics issue in the country's eastern sector," he said.

At present prices are hovering around U$145-150 falling from this year's high of about $180 a tonne to $80 a tonne, he said.

For six months ended September 30, 2010, iron ore exports fell by 8.43 per cent to 40.2 million tonnes against the year-ago period, the FIMI data said.

At present, iron ore lumps attract an export duty of 15 percent while a 5 per cent tax is levied on shipments of iron ore fines.