Indian iron ore export tariffs increase China's spot prices in recent years

The Indian government announced on the evening of the 24th that from the early morning of the 25th, the export tariff on iron ore fines was raised from 0 to 5%, and the lump mine was adjusted from 5% to 10%. The industry believes that this news will further stimulate the recent rise in the spot price of domestic imported Indian iron ore.

Last year, due to the reduction of global steel production, the decrease in iron ore demand and the export of Indian iron ore were also affected. The Indian Ministry of Finance announced on December 7, 2008 that it would cancel the iron ore fines export tax and reduce the lump ore export tax to 5 %. With the recovery of the Indian iron ore export situation this year, the Indian Ministry of Iron and Steel has also proposed to resume the export tariff on iron ore.

Sharma, Director-General of the Mining Coalition of India, stated that this was a decision made by the government at a wrong time when ore exports rebounded and the steel industry showed signs of recovery; the Ministry of Finance should postpone the collection of iron ore export tariffs and wait for global steel. The company completely out of the financial crisis. The Indian Ministry of Mines also expressed its dissatisfaction with the increase in tariffs.

This month, as large and medium-sized steel companies such as Baosteel raised the ex-factory prices of products in January 2010, and the price of imported ore rose sharply, the quotation for Indian iron ore (Fe63.5%) outside the plate has reached 118-120 USD/ton, and this time the export is raised. Tariffs, will increase the cost of about 4-5 US dollars.

Some iron ore traders disclosed that "they have recently added one to the contracts signed by Indian miners: If the Indian government raises the iron ore export tariffs, the increase in tariffs will be borne by the Chinese buyer." Analysts said. The Indian iron ore exporters all want to transfer the increase in tariffs to the Chinese buyers in the downstream. Although the Chinese buyers are also very reluctant to accept this clause, due to the current tight resources, many buyers only Can agree.

It is reported that as the three major mining companies have barely supplied on the spot market, Chinese steel companies have turned their attention to India. This also led to a rapid increase in Indian ore prices. The 63.5% grade Indian ore CIF price of 120 US dollars / ton has been significantly higher than the spot price of 62% grade Australian ore, almost equal to the 65% grade Brazilian ore spot price. .

Some steel companies believe that after India raises export tariffs, it will once again push up the Indian spot ore prices. This is a severe test for the Chinese steel plant's bearing, and it will also have a relatively adverse impact on the iron ore negotiations. India The spot price of the mine and the price of Australia's long-term co-ordination to China's port have already had a huge spread of $40.