India to limit iron ore exports

India may impose taxes and quotas on exports of iron ore from the country in order to increase availability of the raw materials for the domestic steel industry, according to Indian Steel Minister Virbhadra Singh. "The government has taken a few policy measures to discourage avoidable exports of iron ore and consequently raise domestic availability by increasing export duty on lump ores to 15 percent and having a five percent duty on fines. Although this will have a marginal impact on exports, the government would have to look at the question differently by bringing in definitive deterrence," Mr. Singh said. "If needed, we will resort to taxation measures and quantitative restrictions to conserve the use of iron ore for today and for the future. But such measures can be brought in a phased manner with a clear long-term plan," he added. India's iron ore exports are directed mainly to China. Most iron ore in the Chinese import iron ore spot market is from India.Nike