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China's imports of iron ore from India will drop following the levy of export duties, said Liu Zhengang, a senior manager with China Minmetals Corporation, the country's largest minerals trading company.

 

"The export duties make Indian iron ore less competitive in price and are forcing buyers to turn to other countries," Liu said.

 

He said the attractions of India iron ore are their comparatively low price and India's proximity to China, which secured faster capital circulation.

 

However, the situation changed after India imposed a tariff of 300 rupees (US$7) on per ton of iron ore exported from March 1.

 

Sinosteel Corporation, China's second largest iron ore importer, announced last week that it would call a halt to imports from India, the first company to take action against the duties.

 

As the world's biggest producer and consumer of steel, China imported a record 325 million tons of iron ore last year, 23 percent of which came from India.

 

(Xinhua News Agency March 14, 2007)