Iron ore exports up 17% in Feb on China demand

The country's iron ore exports increased by nearly 17 per cent to 12.6 million tonnes in February mainly on account of improved demand from Chinese steel mills, the apex miners body FIMI said today. In the corresponding month of the 2007-08 fiscal, iron ore shipments stood at 10.8 million tonnes, as per provisional figures of the Federation of Indian Mineral Industries (FIMI). During the last 11 months (April-February), exports rose marginally by 1.3 per cent to 91.6 million tonnes as against 90.4 million tonnes a year ago. Although iron ore shipments increased in February, the miners said both demand and price of the mineral has started plummeting in the spot market from March as steel companies are not operating their units at optimum capacities. "March has been the worst for miners as demand, which was on a rise from steel mills till February, has fallen along with prices of iron ore," FIMI President Rahul Baldota said. Selling at around $58 a tonne in November last year, the Indian iron ore is now ruling at $47 in the international spot market, he added. Iron ore is a vital raw material for steel-making. India annually produces about 207 million tonnes of the mineral, of which nearly 104 million tonnes is exported. Besides private miners, state-run mining giant NMDC exports over three million tonnes of iron ore to Japanese and South Korean steel makers through trading agency MMTC.