Indian Govt Hikes Duty on Iron Ore Exports

India raised iron ore export duties to 30% from 20% as it seeks to conserve supplies for its steel industry, sending down shares of iron ore producers and boosting that of steelmakers.

The government issued a formal order removing the previous 20% duty, and two revenue officials said this meant the rate reverted to 30%, which one of them said was the peak tariff level.

The new rate is 30% on both fines and lumps, said RK Sharma, secretary-general of the Federation of Indian Mineral Industries. The rates were effective December 30, he said. This move appears to have been taken to appease the country's steel lobby, which has been demanding such a hike, Sharma said.

India is one of the world's biggest exporters of iron ore, with much of its product bought by China. Sesa Goa, a major ore seller, said in November that India's exports had already probably fallen by a third in 2011 to 65-70 million tonnes.