India considers export tax on low-grade iron ore
India is considering an export tax on low-grade iron ore to meet rising local demand. Small steel producers want restrictions, but the Federation of Indian Mineral Industries opposes it. India's steel demand is increasing, driven by steel exports from China.
India is considering an export tax on low-grade iron ore after small steel producers urged the government to curb its overseas sales, two sources directly involved in the matter said.
China typically accounts for more than 90% of overall shipments of iron ore from India, which is the world's fourth largest producer of the steel-making ingredient.
Demand for steel in India, the world's second-biggest crude steel maker, has raised iron ore consumption in the country and earlier this month small steel producers petitioned the Ministry of Steel to take measures to restrict exports to help ensure sufficient local supplies at affordable rates, the sources said.
A decision on whether to impose an export tax will depend on the recommendations of the Ministry of Steel, which did not respond to a Reuters request for comment on Monday.
The government was examining the issue, including iron ore export data and small steel producers' demands, the sources, who are directly involved in decision-making, told Reuters. They declined to be identified as the deliberations are not public.
