The impact of slower exports and demand will affect the entire value chain and mining too will feel the tremors
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Chennai: If a tariff hike on imports by the US hits steel and aluminum exports, the mining industry cannot stay unaffected. With India accounting for a miniscule portion of China's iron ore consumption, the impact could be minimal.
The impact of slower exports and demand will affect the entire value chain and mining too will feel the tremors.
However, India’s iron ore production is between 200 to 250 million metric tonnes and its exports around 45 million tonnes, mainly to China. On the other hand, Chinese total consumption of iron ore is 1.24 billion tonnes.
Though China is reported to go slow with its production of steel in the wake of the trade war, it has the capacity to absorb the exports from India, which is a small percentage of its consumption. “We export around $3 billion worth of iron ore and that is not a significant quantum for China,” said Ajay Sahai, director general, FIEO.
“Even if we see export demand slackening, the domestic steel makers can consume more if Chinese steel is not dumped into the country and adequate safety measures are taken,” said Saikat Dutta, director, policy, Engineering Export Promotion Council.
( Source : Deccan Chronicle )
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