Indian Iron Ore Exports Drop by 47%

Iron ore exports in India saw the sharpest monthly drop that they have had in 2 years in September as exports dropped by 47%. India shipped 3.02 million tonnes of iron ore in September 2010 as compared to 5.7 million tonnes in September 2009.

India is the third largest exporter of iron ore worldwide after Brazil and Australia. Almost 80% of its exports are headed for China. An analyst at RBS in Perth, James Wilson said that the decreasing supplies from India would push up global prices of iron ore, this would be good for the market.

The decline in iron ore exports by India has been attributed to two main reasons. The ban imposed on exports by the state of Karnataka in July this year and the heavy seasonal monsoon rains.

In a bid to control rampant illegal mining in the state the government of Karnataka had banned iron ore exports in the July quarter. The ban has been challenged by iron ore exporters. The Karnataka High Court is to deliver a ruling after holding several hearings.

Exports from the state of Goa were badly affected thanks to the extended monsoon rains, but are likely to pick up this month.