A decrease in the supply of raw materials from India may affect the work of foreign steel mills.
India cut iron ore exports to “almost zero” in October. This was announced by the representative of the mining association. According to experts, it will be possible to increase export volumes if the amount of export duties is reduced.
India reduced iron ore exports: production fell by 3%India is known to have raised its export tax on iron ore to almost 50%. It also increased duties on the export of cast iron and rolling products by 15%. Thus, export taxes affected about 10 types of metal products and raw materials. According to the Secretary General of the Federation of Indian Mining Industry (FIMI) R.K. Sharma, iron ore exports fell “almost to zero” in October. If the duties remain unchanged, then the production of iron ore will continue to reduce overall performance. In fact, the decline in exports has become the main reason for the reduction in the production of Indian mining and metallurgical companies. In particular, in 2022, ore production in India decreased by 3%.
According to the expert, the situation may significantly affect the work of foreign steel mills. The fact is that China has been the main buyer of Indian iron ore for many years. In 2022 alone, the Celestial Empire purchased about 21 million tons of iron ore from India. This accounted for nearly 80% of total Indian exports. But an increase in export tax and an economic downturn in China could reduce Chinese steel production as early as winter. However, a strict zero-tolerance policy for COVID-19 has already reduced demand for iron ore in China. Although prices for the purchase of raw materials in India have partially fallen, China is in no hurry to fully resume the work of industrial enterprises. Therefore, it continues to direct all efforts to the complete elimination of coronavirus infection.
