NEW DELHI, March 8 (Reuters) - India is working on a formula that might act like a cap on iron ore prices, the country’s steel secretary Aruna Sharma told CNBC TV18 on Wednesday.
“There needs to be some sharing of the profits. We are working on the end-formula, and maybe we will come up with the logic very soon,” Sharma said.
The price of iron ore “should not move like the sensex” as such price fluctuations make it very difficult for an industry to work, she added.
Iron ore prices rose to their highest since August 2014 last month in China, the world’s top producer and consumer of steel.
With Beijing expected to boost infrastructure spending, iron ore .IO62-CNO=MB, which is used to make steel, could rally further. (Reporting by Sudarshan Varadhan; Editing by Sherry Jacob-Phillips)