The Wall Street Journal reported today that Indian Steelmakers such as JSW Steel (NSE:JSWSTEEL) and Tata Steel Ltd. (NSE:TATASTEEL) will increase imports of iron ore due to domestic shortages. According to the Journal, the country’s domestic iron ore production is set to drop by 7 percent this financial year. Helen Lau, senior analyst with UOB Kay Hian, told the Journal that in the short term, India’s imports might only have a marginal effect on iron ore prices.
As quoted in the publication:
Basant Poddar, vice chairman of Federation of Indian Mineral Industries, said he expected total Indian imports to reach 10 million-15 million tons this financial year ending in March, compared with 500,000 tons last year. He said it made sense for port-based steel plants to import high-grade ores as the imported price was nearly comparable to lower-grade Indian ores.