The Indian Ministry of Finance has decided not to increase the export tariff on iron ore. The current level of export prices for Indian iron ore is higher than its value, which does not reflect the relationship between supply and demand, Wang Hongsen, General Director of Sinosteel Corporation (India), told China Business News yesterday.
The Indian Ministry of Finance held its 2008 annual budget session on February 29, where steel department officials suggested a 10% tariff increase for exported iron ore. But the minister said that the suggestion wasn't approved.
China accounts for 80 percent of India's annual iron ore exports. Any decrease in iron ore exports would break the trade balance between China and India. In addition, India's decision came from consideration for the great pressure inside its mining enterprises, Wang explained.
For more details, please read the full story in Chinese (http://www.china-cbn.com/s/n/000005/20080304/020000072705.shtml).
(China.org.cn March 4, 2008)