Post News Network
Bhubaneswar, Oct 12: Despite opening of iron ore mines in the state, export of the commodity is likely to be subdued in the current financial year on the back of low global ruling price of the ore coupled with weak steel demand.
Freight traffic of Railways and consignment at Paradip port are being affected due to this scenario, observers said.
Due to slowdown in Chinese economy, iron ore prices have plunged to around $52 per tonne in the recent time. Analysts predict further slide in prices as major producers like Rio Tinto and BHP Billiton have decided to ramp up production despite low prices of ore.
Further, 30 per cent export duty imposed on iron ore lumps and 10 per cent duty on iron ore fines are working as major dampener for producers to export the commodity overseas. As per miners, export of iron ore is not viable at this global price points.
The country exported 7.3 million tonne of iron ore during the last financial year, which is likely to decline to around 5 million tonne this fiscal.
Notably, exports of minerals from the state dipped around 86 per cent to Rs 475.17 crore in 2014-15 compared with Rs 3,546.78 crore reported in 2013-14.
Metallurgical goods contribute significantly to state’s export basket and any fall in exports of iron ore is bound to affect the exports revenue of the state.
