Iron ore demand, price to wane further

Mumbai : Iron ore prices are likely to fall 10-15 per cent in two months, due to slowing demand from steel mills in India and abroad, with the onset of monsoon. Mining and transportation of minerals halt in this period in most Asian countries, with mills using raw material from their inventory. Only pending and need-based orders are met during this period. The demand for ore declines 70-80 per cent due to waterlogging in mines and blockage of roads.

“Iron ore exports are facing delay in permission from the Karnataka government despite the Supreme Court ordering a lifting of the ban on April 20. By this time, the state government should have allowed exports. Although it has hinted at allowing exports in the next week, miners and traders may not get the benefit this season, as ports have started shutting operations gradually," said R K Sharma, secretary-general of the Federation of Indian Mineral Industries (Fimi).