India throws $15 bn lifeline to world's iron ore miners
stood at 32.6 million tonnes, down nearly half from a year ago, Chinese customs data showed, with South Africa edging it out as the No. 3 supplier. Shipments from Australia and Brazil were up 20 percent and 12 percent, respectively.
INDIA AS A BUYER
The flipside is that India is also starting to ship in ironore in significant quantities.
India has imported 9 million tonnes of iron ore so far in the fiscal year that began in April, estimates Basant Poddar, vice president of the Federation of Indian Mineral Industries, and could ship in 15 million tonnes for the full year. "It is a sad situation that we cannot mine in our own country legally and supply to our own domestic steel industry," Poddar said.
Importers include big producers Essar Steel, Bhushan Steel and JSW Steel, he said.
For the next fiscal year, India's iron ore exports may be no more than 15 million tonnes, while imports could climb to 20-25 million tonnes, said Poddar, making the country a net importer for the first time ever and hurting the competitiveness of its
steel producers. "Being an iron ore-rich country like India, it doesn't make sense to be producing steel on the basis of imported iron ore. It doesn't work out economically for the steelmakers," said Gunjan Aggarwal, senior consultant at research firm CRU in Mumbai.
Of the 800 iron ore leases in the country, only around 300 are operational, said a senior mines ministry official, adding that the supply squeeze should be short lived.
"Systems are being tightened
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