| The TEX Report Topics < Iron Ore > | |
| HOME >> Topics List >> January, 2006 >> 13 (Fri) |
| Approval Around The Corner For Renewed Long-Term Iron Ore Export Contracts |
|
Long-term supply contracts to export Indian iron ore to steel mills in Japan, South Korea and China appear to come into force finally. India's local press (India Daily) reported January 11 to the effect that though iron ore export policy had partly undergone modifications by the Government, a prompt approval might be given to the long-term supply contracts already concluded with the purchasers in the three destinations, Japan, South Korea and China. Existing contracts are due to expire on March 31 this year. In preparation for the expiry, Indian state-owned iron ore suppliers, MMTC, NMDC and KIOCL set up renewals of long-term supply agreements with these three countries, for which governmental definitive approval is yet to be given to this date. Steel companies in India have been appealing to the Government since last year for banning of iron ore exports. Increased exports of iron ore to China in particular have boosted prices to over US$50 per ton in the spot export markets, entailing price hike inside the country building a sentiment of tight supply. Five Japanese steel companies signed six-year renewed supply contracts back in March 2005, scheduled to be valid for 2006 to 2011, and have been waiting for the approval of the Indian Government. |
| last modified : Wed 18 Jan, 2006 [14:06] |
