Commodity shipping rates in India, which rose in early February, were expected to fall in the near term, industry observers told DNA India on 24 February.

The comments followed a drop in demand for Indian iron ore from China, which was negotiating long-term contracts with Australia and Brazil. The contracts were expected to be finalised within the following 10 days.

While China, the world’s largest iron ore importer, sources most of its committed iron ore from Australia and Brazil, the majority of its short-term spot requirements are met by imports from India. About 80 per cent of India’s iron ore exports are destined for China.

According to one shipping agent, no China-bound iron ore cargo had moved out of India in the previous four days. The situation had worsened so much that exporters who had committed ships and had already brought the cargo in the port were faced with situations where buyers had withdrawn.