Indian tax could affect steel negotiations

A new export tax on iron ore in India could affect the ongoing 2008 iron ore contract negotiations between Chinese steelmakers and international mineral producers, Oriental Morning Post reported (in Chinese). India, a major spot iron-ore supplier for China, will raise its export tax on the mineral from 10% to 15% in April, a move which will have the effect of higher prices and lower Chinese imports from the country. The situation looks to give more leverage to the three leading iron ore producers in the negotiations. Analysts said Chinese steel manufacturers should explore overseas resources more actively, as their situation will be improved once they are able to secure 200 million tons of iron ore from abroad.