Iron ore exports to dip by 40% as China suspends imports

Leading iron ore exporters of the country today announced they would cut down ore exports by 40 per cent. The decision comes in the wake of China's suspension of iron ore imports from India.

"We have no other option except to lower exports by 40 per cent in view of the decision by the Chinese steel companies to suspend ore imports from India," R K Sharma, secretary general of the Federation of Indian Mineral Industries (FIMI), the apex body of mineral exporters said.

At least 10 steelmakers in China, including Baosteel Group, the country's largest mill, have decided to suspend iron ore purchases from India after the Indian government proposed to levy export duty of Rs 300 per tonne on iron ore.

The country supplied 23 per cent of China's 326 million tonnes of iron ore imports last year, making it the second-biggest supplier after Australia.