MMTC: India's Move to Rise Iron Ore Export Tariff Not Affect Its Exports

On January 19, MMTC Ltd, an important main commodities trading company, showed that the government's move to raise iron ore export tariff had no effect on its exports. However, it also said that the iron ore contrast price could be renegotiated with Indian suppliers if China iron ore importers were influenced by the adjustment.

Sanjiv Batra, the President and General Manager of MMTC Ltd, said that, since there wasn't a long-term iron ore supply contract but only spot supply contrast between Indian and China, the adjustment had no effect on its exports.

Batra explained during one China-India Trade and Investment Forum, if China importers had to undertake the extra cost due to the tariff rise, the two sides can renegotiate the supply contract. He also estimated that the spot price for Indian iron ore would continue to increase.