A challenging situation for small steelmakers at home as iron ore exports rise

Mumbai: Steel producers have demanded a ban on the export of iron ore in view of the rise in ore prices at home due to the sharp increase in the demand for iron ore, the raw material of steel from China. It is being discussed that the iron ore producers are angry about this demand of the steel industry.

Last year, India's iron ore exports increased by 170 percent to 4.40 crore tonnes. Most of the exports went to China. While the demand for iron ore is increasing domestically as well, the rise in its prices has put small steel producers in trouble, industry sources said.

If iron ore becomes expensive in India, steel production in China will continue to increase and the steel industry in India will have to suffer. In the last six-eight months, the price of ore has increased by 30 to 32 percent to Rs 6,000 per ton.

While the small steel producers in various states of the country are in a position of loss, the small steel producers have come together and submitted to the government to stop the export of iron ore and reduce its price.

Large steel producers of the country can bargain prices for raw materials like iron ore and coal, while it is not possible for small steel mills, he said. To increase domestic supply of iron ore, the government had imposed a 50 percent export tax on iron ore from May 2022, but the tax was withdrawn six months later, informed sources said.