The government of India has reduced export duty on iron ore pellets to zero from 5 percent, a move that will make the commodity more competitive amid subdued demand and weakening prices. In 2014, the government had levied a 5 percent export duty on iron ore pellets, which are value-added products of leftover material or low-grade iron ore and are used in steel-making.

Steel and its related raw material market is facing a tough time on account of subdued demand and high production, adversely impacting the prices. Besides, a fall in demand in China, the worlds’ biggest metal consumer, is leading to the country dumping excess steel and other finished products in consuming countries, including India, a move that has hit the top line and bottom line of mining and steel companies. India has an iron ore pellet production capacity of about 85 million tonnes per annum.

Iron Ore

• Iron ore is the term given to concentrations of certain iron compounds. Iron compounds include iron sulphate, iron geothite, iron hematite, iron chloride, iron carbonyl, and iron magnetite.
• Iron ore is usually smelted to produce pig iron (metallic iron), which is used to make steel.
• Largest producers of Iron ore are Ukraine, Russia, Brazil, China, Australia, India, USA, South Africa.