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“Now we have urged the federal government that there’s a scarcity of iron ore, (so) please intervene and levy export obligation,” Rahul Mittal, chairman of the Sponge Iron Producers Affiliation, advised Reuters in an interview.
India, the world’s largest sponge iron producer, has about 336 sponge iron crops unfold throughout the nation. India produces round 50 million metric tons of sponge iron, which is generally utilized by secondary metal producers as uncooked materials.
India’s iron ore exports touched 32.2 million metric tons throughout the first 9 months of the present fiscal 12 months that started in April 2023 – value $2.7 billion – from 9.5 million metric tons a 12 months earlier.
Greater than 90% of India’s general iron ore shipments go to neighbouring China.
The surge in India’s iron ore exports has rattled sponge iron producers who’ve complained about rising costs and falling provides of the important thing ingredient in sponge iron making. Mittal stated a pointy bounce in iron ore exports has exacerbated shortages in latest months. However sponge iron producers have been elevating considerations about provides for the reason that authorities in November 2022 scrapped greater export tax on low-grade iron ore lumps, fines and pellets, reversing the Might 2022 determination, he stated.
The Federation of Indian Mineral Industries (FIMI), an trade physique of mining firms, has requested the federal government to not impose curbs on iron ore exports. FIMI has argued that India ships out solely low-grade iron ore, which isn’t extensively consumed inside the nation.
Countering FIMI’s argument, Mittal stated India’s sponge iron producers use all grades of ore. “There are such a lot of producers utilizing low grades.”
India is anticipated to provide 51 million metric tons of sponge iron within the fiscal 12 months to April 2024.
Sponge iron output is anticipated to develop 15% in 2024/25, Mittal stated, highlighting the rising requirement of iron ore by India’s sponge iron producers.
Most of India’s sponge iron output is consumed inside the nation.
