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india raises rail freight for iron ore

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    http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSDEL21010920080402

    Now given that general related news articles are being posted on other stocks and left alone to stand. GNL has iron ore tentements and a rise of the price of iron will affect its mt bevan prospects and with drilling hopefully ( no news yet) underway heres a recent news article on iron ore that will affect the price

    India raises rail freight for iron ore

    (Recasts, adds details, analyst comments)

    By C.J. Kuncheria and Rakesh Sharma

    NEW DELHI, April 2 (Reuters) - India has raised rail freight for iron ore, officials said on Wednesday, citing strong demand for wagons but analysts said the move would add to inflation pressures the government is trying to contain.

    "There has been a very large spurt in demand for the movement of iron ore for domestic consumption and export," V.N. Mathur, member-traffic of the state-owned Railway Board, said at a news conference.

    "The rate increase is about 5.6-5.8 percent of transportation cost of iron-ore," he said.

    Iron-ore loading grew 19 percent from a year ago in 2007/08, Railway Board Chairman K.C. Jena said.

    The railways increased the surcharge on iron ore transported to ports for export to 100 percent from 60 percent, and cut the levy for domestic consumption to 30 percent from 60 percent.

    Analysts said the railways' move would push up prices at a time when the government is putting pressure on steel producers to lower their prices.

    "It will definitely add to the cost of iron ore and ultimately affect steel producers if they cannot pass it on to customers," said Pawan Burde of Angel Broking, who estimated freight rates to rise by 15 rupees a tonne.

    India's annual inflation rate hit a 14-month high of 16.68 percent in mid-March, mainly due to a spike in world prices of food, fuel and metals.

    Mathur said the rise in freight rates for iron ore would contribute only a tiny part of the cost of steel products.

    "It is not going to have an impact on inflation," he said.

    The railways kept unchanged the freight rates on finished steel products. (Editing by Ranjit Gangadharan)
 
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