Reuters: Indian government revises duties on iron ore, steel
India has hiked its export duties on iron ore, and it is not a bad thing. It will give the government some money. I do not really see it impacting the margins of the Indian iron ore companies as they will just pass it on to the Chinese. I also do not see it really helping the domestic market that much as it will just give a fairly small advantage to selling domestically. I expect the total margin impact for a Indian steelmaker to be under $25 per tonne savings if they were buying 100% on the spot market.
This, in my mind, was expected and was a non-news event.
Benjamin
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