Despite bans on export of iron ore from India, the price of the steelmaking ingredient has fallen in China.
Business Standard reports that the price of iron ore originating from India has dropped 12% in Chinese markets to $168 a tonne, compared to $191 a tonne two weeks ago.
The website quotes the chairman of Maya Iron Ores, a commodities brokerage, saying that Chinese steelmakers and traders expect the market to drop even further due to global financial turmoil and reduced demand:
“The sentiment among Chinese buyers is very low at this moment. Despite buying a record quantity of 60 million tonnes (mt) in September, the Chinese buyers are lying low for now,” Praveen Kumar said. He added that the government action in Karnataka and Orissa resulted in the rise in prices. But, they are now falling due to global sentiment.
Iron ore exports from India are expected to decline to around 70 million tonnes this year compared to 97.6 mt last year, according to figures from the Federation of Indian Mineral Industries.