Rupee appreciation hits iron ore exports, 9% slip in Q1

Rupee appreciation hits iron ore exports, 9% slip in Q1
PTI
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First Published: Fri, Aug 24 2007. 03 12 PM IST
Updated: Fri, Aug 24 2007. 03 12 PM IST
Goa, 24 Aug Rupee appreciation has hit the iron ore exports hard, which registered a 9.09% decline in the first quarter of FY’08, a top industry official said.
“The iron ore exports fell by 9.09% to about 22 million tonnes (MT) in Q1 FY 08, compared to about 24 million tonnes during the same period last year,” Federation of Indian Mineral Industries (FIMI) Secretary General R K Sharma said here.
“The export realisation has gone down by nearly 9-10% due to rupee appreciation,” he said, adding that overseas market may not be so lucrative if exporters can fetch a good price in the country.
“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,” FIMI President Rahul N Baldota told reporters at a two-day conference on Marketing of Indian Iron Ore here.
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.
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, Baldota added.
Factors like location advantage and fast growing Chinese steel industry, which is adding 60-70 million tonnes every year to its present capacity, are expected to provide huge opportunity to Indian iron ore exporters to tap Chinese market.
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First Published: Fri, Aug 24 2007. 03 12 PM IST