September 07, 2008

Rupee appreciation hits Q1 iron ore exports - FIMI

PTI reported that Rupee appreciation has hit the iron ore exports hard, which registered a 9.09% decline in the first quarter of 2007-08.

The report cited Mr RK Sharma secretary general of Federation of Indian Mineral Industries told PTI that “The iron ore exports fell by 9.09% to about 22 million tonnes in April to June quarter of 2007-08 as compared to about 24 million tonnes during April to June 2006-07. The export realization has gone down by nearly 9% to 10% due to rupee appreciation and overseas market may not be so lucrative if exporters can fetch a good price in the country.”

Mr Rahul N Baldota president of Federation of Indian Mineral Industries while speaking at a two day conference on Marketing of Indian Iron Ore said that “The country has enough resources, approximately 25 billion tonnes, to meet the domestic needs as well as exports that could last up to 80 years, at the present rate of mining and supply and demand.”

Mr Baldota said that out of the 172 million tonnes of iron ore produced in India domestic steel plants consumed only about 58 million tonnes and rest was exported. He added that local plants uses high grade iron ore and only low-grade ore was exported to China, which is a major buyer importing about 80 million tonnes of Indian iron ore.