Deutsche Bank AG said that seaborne supplies of iron ore are unlikely to rise for now even after India’s Karnataka state lifted a ban on exports of the steelmaking ingredient.

India is the world’s third-largest iron-ore exporter, and Karnataka shipped about 20 million metric tons of the commodity last year. The state barred overseas sales in July to boost supplies to local steelmakers. Outbound sales could resume as of April 20, India’s top court ruled this month.

Mr Thomas Baldwin an iron-ore, freight and steel trader with Deutsche Bank in London in a note said that “There will not be significant increase in export volumes from India and with monsoon period looming next month, spot market will likely remain tight for next couple of months at least.”

According to the World Steel Association, shipments can be disrupted by India’s June to September monsoon season, which accounts for more than 70% of the country’s annual rainfall. The price of Indian iron ore shipped to the Chinese port of Qingdao has risen 6 percent in the past year. China is the world’s biggest iron-ore consumer and accounted for 46% of global crude steel output in March.

(Sourced from Bloomberg.net)