Indian iron ore export duty increase re-ore price support
2011-3-1 8:12     in iron ore prices because of steel prices fell and the callback just a few days when the news as another catalyst for ore price rise .

Government of India in yesterday's federal budget report that will lump ore and fine ore iron ore export tax to 20% uniform. Prior to the Indian ore export tax to 15%, 5% fine ore.

India is the world's third largest iron ore exporter. Iron ore production in the country in 2010 was 2.57 million tons, of which 115 million tons for export. Meanwhile, India is China's third-largest iron ore supplier, accounting for 15% of China's imported ore -20% of the total. Indian ore export tariffs increase the cost of iron ore supply will increase again.

In fact, the current spot market iron ore prices in a row after 5 months are beginning to show signs of fatigue. Callback into the steel market, the current price of the ports despite a small decline, but few market transactions. According to statistics, last week, prices of iron ore swaps callback, causing stock markets to follow lower. 63.5% Indian iron ore fines yesterday outside the panel declined to offer 191 U.S. dollars / ton, higher than early February has been the high point down 8-9%, reported the actual transaction price lower.

India's export tariffs raised at this point, so there will no doubt sign the ore market weakness to be supported. However, there are relevant analyst, told reporters that due to the current ore price range is the highest in history, little room to rise.

In recent years, with strong economic growth in India, the country's ore demand is also rising. Government of India, increasing the threshold of ore exports, has banned the export of ore part of the port, suspended over iron ore mining to improve the iron ore export tariffs and increasing transportation costs.

Indian government has repeatedly increased the cost of ore exports, in fact, for Australian ore and Brazilian ore to the market space. Indian Mineral Industries Alliance (FIMI) Secretary-General RKSharma told the media that India's export tax hike in international iron ore market will lose their competitiveness.