MMTC may hike iron ore prices for Japanese markets

The state-owned Minerals and Metals Trading Corporation (MMTC) is likely to double the prices of iron ore meant for the Japanese markets during the next fiscal.

At present, the corporation, which has been exporting iron ore mainly to Japan for the last several years from Vizag port, is charging $ 20 a tonne of iron ore from the Japan importers, while it is collecting $ 40 from the Chinese importers.

"As there is a wide variation in the export price, MMTC will ask the Japanese iron ore importers to pay extra price from next April," MMTC sources said.

MMTC exports around 40 lakh tonnes of Bailadilla iron ore to Japan through Vizag port on a yearly contract basis. For the current year, MMTC agreed to supply iron ore at $20 a tonne.

Though the export price rose to more than $40 a tonne of iron ore in the international market, MMTC has been charging only $20 a tonne from the Japanese importers as per the agreement.

Apart from Japan, MMTC exports iron ore to China and Korea from Chennai and Goa ports also. The corporation is collecting $40 a tonne of iron ore from the Chinese and the Korean importers.

"Several private traders from India are exporting iron ore to China in bulk quantities. The Indian traders too are charging $40 a tonne of iron ore from the Chinese importers. Keeping this in view, MMTC has decided to enhance the iron ore export prices by nearly 100 per cent during the next fiscal," the sources said.

At present, MMTC procures iron ore from NMDC and exports it to Japan and China. It charges a 3 per cent commission from NMDC on the total value of the exported iron ore.