CHINA EMERGES AS A MAJOR IMPORTER OF IRON ORE FROM INDIA

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LOK SABHA

China has, of late, become a major importer of Indian iron ores. Indian iron ore export to China has gone up from 7.45 million tonnes in 1998-99 to 26.27 million tonnes in 2002-03. In fact, the growth in Indian iron ore export during the last five years has been possible with the increased exports to China. The Chinese demand for increased iron ore exports from India continues for the present also. As against export of 12.64 million tonnes during April-October 2002, a quantity of 15.98 million tonnes has been exported during the same period of financial year 2003, thereby registering an increase of 26.42%. This indicates the increased demand by China for Indian iron ore. This is likely to continue in the year 2003-04 and subsequent years also.

MMTC, the designated State Trading Enterprise (STE) for export of high grade iron ore has so far not received any request from other countries to increase the iron ore exports in 2003-04. However, the export of iron ore to China which is currently at the level of 26-27 million tonnes is likely to continue in the year 2003-04 also. Besides this, the traditional importers of Indian iron ore viz., Japan and South Korea will maintain their off-take at the current level of 15-16 million tonnes and 2-3 million tonnes respectively, as the supply is guided by the long term contracts. This was stated by Shri S. B. Mookherjee, Minister of State for Commerce & Industry, in a written reply in the Lok Sabha today.