Reuters reported that India"s iron ore exports in the just ended 2008/09 year may have fallen 8% and could fall a further 15% to 20% in 2009-10.

The report quoted Mr Ravi Kastia MD & chairman of Essel Mining told Reuters in an interview said that "India"s volumes may go down because a lot more supplies are being tied up on long-term contracts by China.”

Mr Kastia said that "Chinese have invested in Australia and Brazil, so they would like to take their own material.”

He said that Essel exported about 4 million tonnes of iron ore in 2008/09, which ended on March 31st 2009 and is one the country"s top five iron ore exporters.

Mr Kastia said that global benchmark prices, being currently negotiated, were likely to be 40% down from USD 91 in 2008/09. He expected spot prices would stay mostly around current levels of USD 48 to USD 52 per tonne.

Most of India"s iron ore exports are dealt on spot basis and shipped to China to feed the world"s largest steel industry.