Global iron ore prices at five-year high, but India fails to cash in

By failing to extend the zero export duty benefit on higher grade ore, Indian miners could not cash in on supply shocks and rising Chinese demand

What could be this if not self-harming? Driven by supply shrinkages from accident-struck Brazil and Australia and more than expected demand from Chinese steel mills, world iron ore prices are at a five-year high. But New Delhi continues to drag its feet over rejigging the export duty structure. At present, zero export duty is available on iron ore with iron (fe) content of up to 58 per cent. Local miners have asked that this duty benefit be extended to iron ore with fe content of up to 62 per cent. Without this, India remains outpriced in the global market just