India’s iron ore exports are likely to be 75% lower than previously expected in the quarter ending in March as a rise in export duties kicks in as part of the government’s push to conserve supplies for domestic steelmakers.
Iron ore exports from India, the world’s third-largest supplier, will be less than 100 mt in the fiscal year starting April if prices stay at current levels, said P.K. Mukherjee, MD of top Indian iron ore exporter Sesa Goa.
To quench the thirst of Asian steel makers, Japan and more recently China during recent decades, iron ore exports from India have grown, requiring large scale mechanised handling facilities at major ports such as Visakhapatnam, Chennai and Mormugao.
India’s Visakhapatnam Port Trust (VPT) has shortlisted six bidders for the US$95M contract to mechanise coal handling facilities and upgrade the general cargo berths in the outer harbour to handle 200,000-dwt ships.
India will build 50 new ports over the next five years as it tries to overhaul the creaky infrastructure and reduce congestion at ports that is holding back its trade and economic growth, shipping secretary APVN Sarma said.