Indians Iron Ore Segment 📈 🪨 ⛏️🚚⚖️
India’s iron ore market has been reviving lately. Ever since the government lifted harsh export tariffs which were levied from May to November 2022, the iron industry has seen positive sentiments, with exports lifting up from last year. Exports almost turned nil last year in H2 according to market experts.
Iron miners like NMDC could stand to benefit from a strengthening market. NMDC recently raised iron ore prices by 300 rupees per metric tonne, while company shares gained value from early 2023 levels, pointing to a more profitable market. However, growing domestic demand for iron ore could also divert material into the local market. Moreover, higher grades of iron ore are not exported much as Indian primary mills require higher grade material, combined with the export duty of 30pc on higher grades.
But that’s not all. India has also granted more iron mining licenses to Goa and Orissa. In Goa, iron mining was halted by the government in 2018, however, mining has already started resuming, with full production expected by 2023-2024. Additionally, Goa’s state government recently lifted a moratorium on iron dumps with low-grade ore, where an estimated 700 million tons of iron ore languish. Resuming operations at these dumps could open up the path for 25 million tons per year of exports.