India's iron ore export to China has slumped by 26.5 per cent in August to 4.59 million tons, lowest monthly level since October last year, as compared to July, continuing the decline after the Centre imposed an export tax in March.

"Indian iron ore exports to China in August hit their lowest monthly level since October 2006. China's total August imports were down by 12.8 per cent from July at 29.29 MT, with shipments declining from most major supplying countries," the Steel Business Briefing (SBB) reported quoting data from China Iron and Steel Association (CISA).

The iron ore export to China has declined by 26.5 per cent in August in comparison to July when the country shipped 6.2 MT to its neighbour, SBB said, pointed out that volumes have been steadily dropping since the central government introduced an export tax in March.

During January-August, India exported a total of 56.19 MT to China, a 5 per cent growth as compared to the same period in 2006. Brazil and Australia have outpaced this growth at 27 per cent and 14 per cent respectively, SBB said.

As Indian monsoon season traditionally impact China's import data during September and October, prices may be set to skyrocket even further above the current 155 dollars per tonne.

"However, Chinese traders comment that such high prices are unacceptable and that buying activity is declining as a result," it reported.

Mr. Divya Aggarwal

Money Management Consultants Ltd

Senior Copy Editor, Money Management Consultants Ltd
New Delhi, India

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