Steel Secretary N N Sinha rules out ban on low-grade iron ore exports

According to reports, smaller steelmakers in India are pressing for a ban on exports of iron ore, after a surge in sales to Chinese mills pushed up local prices.

India is not exploring a ban on the export of low-grade iron ore of below Fe (iron) 58% grade, secretary of Steel Ministry N N Sina said on February 29 on the sidelines of the CII's CORTEM 24 event.

"We have not considered a ban and nor recommended it," Sinha said in response to a query by Moneycontrol. "The iron ore that is exported is low grade iron ore.. so what will be the purpose if you don't use that low grade iron ore in your own mills," Sinha said.

According to reports, smaller steelmakers in India are pressing for a ban on exports of iron ore, after a surge in sales to Chinese mills pushed up local prices.

Exports of iron ore, mainly fines of below Fe (iron) 58% grade, as well as pellets rose to a three-year high of over 44 million tonnes in calendar year 2023, according to analytics firm SteelMint.

Earlier in the week, Bloomberg reported that second-tier steelmakers have asked the government to take action to curb the exports. Post which Reuters reported that the ministry is considering an export tax.

Production of iron ore stood at 177.06 million tonnes in the April-November 2023 period, of which domestic consumption stood at 135.14 million tonnes, according to the Federation of Mineral Industries (FIMI).

Industry body FIMI had sent a letter to the ministry on February 15 advising against any ban on the export. "In May 2022, when the export duty was imposed on (withdrawn on November 2022) on low-grade iron ore fines and pellets, the mining sector was adversely impacted in terms of its output," FIMI mentioned in its letter.

Meanwhile, India's domestic finished steel production stood at 89.711 million tonnes, witnessing 14.3 percent growth, during the period between April-November 2023.