India's iron ore exports to China have recovered as a shortage of ships has pushed up freight rates, handing it a temporary advantage over rival Brazil, senior trade officials said.

Sanjiv Batra, chairman and managing director of MMTC, said Chinese buyers were now snapping up Indian ore, which had gained a distinct price edge.

"That advantage has come to us. And buyers would like to buy from India," Batra said.

Sales had fallen after India imposed a duty of Rs 300 per tonne on iron ore exports in the budget in February. It later cut that to Rs 50 for low-grade ores below 62 percent iron content after protests from the local mining industry.

Domestic steelmakers have been demanding curbs on iron ore exports — two-thirds of which are bought by China — to safeguard supplies for local users.

Chinese orders fell steeply after the duty was imposed.

Rahul Baldota, president of the Federation of Indian Mineral Industries, said freight rates from India to China had risen to $30-35 per tonne from $20 in the last two months, but Brazilian exporters were facing about $65 per tonne.

Mr. Neeraj Sharma

Neeraj Electronics

CEO, Neeraj Electronics
Jorhat, India

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