Sahit Muja: India could soon decide to ban chrome ore exports to China.
India’s steel ministry, concerned over the depleting reserves of chrome ore has called for a complete ban of its export chrome ore exports.
India had about 50 million tonnes of chrome ore . India now have depleted chrome ore reserves to 38 million tonnes.
China has been importing raw chromite ore from South Africa, Zimbabwe, Turkey, Albania and India at very low prices and using it to produce ferrochrome.
The governments in India , South Africa, had been petitioned by local ferrochrome producers to halt the export of raw chrome ore to China.
Zimbabwe had banned the export of chrome ore, while India was considering a ban given the huge domestic demand for chrome ore.
With regards to South Africa the country may impose export duties and other controls to stop a surge in chrome ore sales to China so as to enable local ferrochrome makers to stay competitive.
India's chrome ore and ferrochrome exports to countries including China could drop by a third in the next four years as domestic consumption gained. The o exports could decline to 300,000 metric tonnes by 2015 from 450,000 tonnes expected in 2011.
Stainless steel consumption in India is being driven by increased usage in airports, railway coaches and automobiles.
The growth in stainless steel consumption would be way sharper than that of China and that higher demand locally would mean exports would definitely fall.
Total domestic consumption may reach 1 million tonnes by 2015, from about 450,000 tonnes, while output may rise at a slower pace of 44% to 1.3 million tonnes, leaving less ferrochrome for exports. Indian Metals, which owns a chrome ore mine in the eastern state of Orissa, expects to produce 200,000 tonnes of ferrochrome this year.
Sahit Muja
President and CEO
Albanian Minerals
New York
