Indian iron ore exports are expected to continue their decline over the next five years after their first drop in a decade last year. The country’s attempts to feed the expansion of its own steel industry is being blamed on the lack of exports, as iron ore is pumped in to domestic steel mills rather than sent abroad.

The lower shipments from one of the world’s top iron exporters will likely see prices continue to rise for the product, which have already trebled since late 2008. This is especially true as increased demand continues to arrive from China.

Indian exports in general are in a state of decline as the government continues to focus on domestic policy. “The policy is definitely not encouraging exports,” said Graeme Train, commodity analyst at Macquarie in Shanghai.

The country is actively curbing overseas sales by raising freight rates and quadrupling export taxes on iron ore fines, the sandy material that typically contains 55 to 65 per cent iron and which comprises around 70 per cent of its annual output of about 200 million tonnes.