Chinese demand for Indian iron ore fades

Chinese demand for Indian iron ore has all but vanished over the past six weeks, hit by rising exports of cheaper ores from Australia and a higher Indian export tax. Aug.21st, Rahul Baldota, president of the Federation of Indian Mineral Industries, said that Australian ore was selling for about USD25 per tonne cheaper than Indian ore, currently priced at about USD115 per tonne for 63% iron content ore grades.

Mr Baldota said that exports to China could halve in the financial year ending March 2009 if the current situation continued.He said India's June exports to China fell to 7.8 million tonnes from 10.6 million tonnes in the previous month. Indian iron ore for China was commanding a price of about USD140 per tonne about four to five months back.