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| In depth data on iron ore sector in India - 08 Sep, 2010 | ||
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The global iron ore market is hot. Everything good or bad about economic activities is visible here. On the one hand, there is strong recovery of demand with the global economic prospects back on track, statistically so till date, concerns nevertheless remain. On the other, speculators are back with panic driven Chinese steel industry rushing to build stock before they set the table for talks with the iron ore mining industry for the year’s contract. The future of the global iron ore industry depends on China. Many believe the steel industry’s growth in China will slow down. At this stage, such a statement will be termed speculative only. The Chinese mills, however, may not yield much ground. They will dig more into their own resources, import more from the spot market and thereby reduce their dependence on contracted volumes, if the prices are not favorable. They have also invested heavily overseas on iron ore assets and will bring in substantial quantities from there to meet some critical needs. The iron ore industry knows that pushing the Chinese mills to a tightrope will boomerang in the long term. More the Chinese mills are stressed, more assets will they acquire, which ultimately will reduce the dependence on the global iron ore cartel. China cannot be ignored by the iron ore miners after all they produce nearly half of world’s steel. A question has always been in the forefront : should the global coal or iron ore contracts be floating types indexed to steel prices, or a market based free float, or of a short duration, say, a month or a quarter? So far, the global majors, tied to annual contracts, have not been able to capitalize on the higher spot prices running through the year on the average. It is not necessary that this will happen every year. Yet, an optimistic mining industry globally is pushing for this. This will effectively bring an end to the annual contracts. The rise in global ocean freight has a very significant impact on the iron ore prices. A higher freight will effectively reduce the contract levels set on fob basis. Any attempt to push the burden of rising ocean freight on to the buyer will be resisted. And if iron ore shipping volumes drop, the dry bulk rates will also crash! One does not really know who will bear the brunt of this. It depends on the strength of the market: who is weak and who is not on the negotiating table. India has taken a protectionist stance. The government needs revenue to support the routine development expenditure and also the stimulus measures. This also sends a signal to the local industry that rampant exports cannot be permitted forever when the local industry faces shortage. In addition, it has sent a strong signal that illegal mining has to stop. Many mines are currently under investigation with their mines lying closed. The local mining industry is lobbying hard to get out of the multiple crises. "India’s Iron Ore: Following the Global Meltdown" report discusses the current iron ore business in India, prospects for the future and unfolds the opportunities to provide strategic guidance to investors and all others related to iron ore business in India. Some of the areas covered in the report are Introduction The supply dynamics of the iron ore market in India The market dynamics of demand and price Structure of the iron ore market by size and pattern of lease holding Iron ore reserves and resources Magnetite resources Iron ore production Private sector growth Indian iron ore trend for various grades of lumps and fines Major freehold iron ore mines Growth prospects in palletizing Industry Overcapacity in pig DRI Consumption of iron ore in India and structure Fore cast of demand for iron ore in India Future of exports Costs of mining Strategic growth opportunities and options It also covers all the major players in Indian iron ore sector Report summary Price: USD 2000 or INR 100000 Delivery Format: PDF Format How to order You can order the report direct through the SteelGuru website by paying USD 2000 in the name of Major & Minor Exims Pvt Ltd by using your Pay Pal account. Or, you can wire the sum through your bank to Major & Minor Exims Pvt Ltd in India. You can also order your copy to reports@steelguru.com, which will send you an invoice of the report or you can call us at +91 124 4048993 or +91 - 9871193457 | ||
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