India's iron ore exports to China fell 26.5% in August. As a result, the iron ore prices may skyrocket, which will in turn affect companies like Sesa Goa, said analysts.

India's iron ore export to China fell 26.5% in August (MoM). It is the lowest monthly level, since October last year. It has been declining after the Centre imposed export tax in March.

China's total August imports were down by 12.8%. The shipments are declining from most of the major supplying countries.

During January-August, India’s exports grew at 5% versus 2006. The Indian monsoon traditionally impacts China's import during September and October. Analysts said that iron ore prices may skyrocket further, above the current UD 155 per tonne.

China reduced the number of licensed iron ore importers. The move was to curb imports to small steel mills. They are stocking up ahead of the expected price increase next year.

Analysts added that a company like Sesa Goa may be affected. It exports 57% to China, 16% to Europe, 11% to Japan and 10% to Pakistan. The exports are around 95% of sales and 70% on benchmark prices.

During the monsoon, the exports generally slow down. The exports from Goa are closed and only the Karnataka port is open.

Mr. Rakesh Joshi

Joshi Enterprise

Manager, Joshi Enterprise
Dispur, India

Free Member, Joined :02/02/2007
No of Topics Posted : 122
Reply/Comments : 16