India's iron ore exports for 2011/12 are seen at about 85-90 million tonnes, down 10.5 percent from an earlier forecast, a trade body official said on Monday, painting a "bleak" export outlook due to disruptions in shipment from a southern state.
"Unless the situation in Karnataka (state) changes, the export outlook is bleak," R.K. Sharma, secretary-general of the Federation of Indian Mineral Industries (FIMI), told Reuters, referring to a ban on shipments from a key producing state. "We are hoping the issue will be resolved soon and exports can become normal," said Sharma, who in June had pegged Indian exports at around 90-95 million tonnes in 2011/12.
A year ago, Karnataka prohibited shipment of iron ore in an effort to control illegal mining. The state was ordered in April by the country's top court to restart exports but permits are yet to be issued. The state accounts for a fourth of all iron ore exports from India, the world's No 3 iron ore exporter after Australia and Brazil.
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