The Aryavarth Express
Agency (New Delhi): India, the world’s fourth-largest producer of iron ore, is unlikely to introduce tariffs on exports of low-grade iron ore, according to a source familiar with the matter. This decision comes amid growing concerns from small and secondary steel producers who have called for government intervention to curb rising exports that they claim are impacting their operations.
China, which receives over 90% of its iron ore imports from India, continues to be a major market for this resource. Despite the domestic industry’s push for export limits, the Ministry of Steel, after a thorough evaluation, found no evidence that increased exports have adversely affected Indian steel producers. This assessment aligns with the interests of India’s mining sector, which opposes export curbs on the grounds that the ore shipped is of a lower grade not extensively used within the country.
The conflict of interest between large-scale mining operations and smaller steel producers revolves around the latter’s reliance on low-grade iron ore, which they claim is crucial for maintaining their narrow profit margins.
In the fiscal year ending March 2024, India’s iron ore exports surged by 118%, reaching a value of $3.9 billion, according to government data.
Additionally, the Ministry of Steel is encouraging steel mills to adopt hydrogen as a cleaner alternative to traditional steel-making processes to reduce carbon emissions. This initiative is part of India’s broader commitment to achieving a net-zero carbon emission target by 2070.
Amidst these developments, the Ministry has also requested the trade ministry to protect Indian steel exporters from the European Union’s proposed carbon emissions tariffs, which aim to penalize high-carbon imports as part of Europe’s climate strategy.
The source also noted that India’s steel consumption is expected to continue its double-digit growth trajectory, supported by rapid economic development and new infrastructure projects, with a 13.4% increase to 136 million metric tons recorded in the last fiscal year.