India iron ore imports have witnessed a record surge during April-October touching 5 million tonnes as steel makers bought raw material from overseas markets due to domestic supply crunch.

According to industry consultancy SteelMint, India imported 5.06 million tonnes of iron ore in the first seven months of the fiscal year ending in October.

Mining restrictions due to court action against illegal mining have reduced iron ore supply in India. That, along with falling global prices, has prompted rising imports, which topped 2 million tonnes in October alone, said SteelMint, predicting the total for the full year to March could reach up to 11 million tonnes.

India holds vast reserves of iron ore and was once the world’s no. 3 supplier. Global iron ore prices have fallen below $76 a tonne, losing 44 percent of their value this year amid a deep supply glut.

Meanwhile, India’s steel consumption growth during April – October 2014. As per the latest data from the Joint Plant Committee under the Ministry of Steel, the consumption stood at 43.112 million tonnes signalling a slump of 0.5 per cent.

The usage of steel during the corresponding period last year stood at 42.9 million tonnes. In October India consumed 6.53 million tonnes of steel, a drop of 1.3 per cent over the same month last year.

Source: hellenicshippingnews.com