South Africa to Replace India as China's Third Largest Ore Supplier

Discussion in 'China' started by ShabiKB, Nov 27, 2012.

  1. ShabiKB

    ShabiKB Tihar Jail Banned

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    According to China’s General Administration of Customs, in the January to September period of 2012, China imported 31.13 million tonne of iron ore from South Africa, up 17.8% YoY and accounting for 5.7% of China’s total volume of iron ore imports.

    Meanwhile, in the given period, China imported 32.35 million tonne of iron ore from India, down 47% on YoY basis and consisting of 5.8% of China’s total iron ore imports.

    Many market players have predicted that if the above trend continues South Africa may replace India as China’s 3rd largest source of iron ore imports, after Australia and Brazil.

    In 2011, India has been a important source of iron ore imports for China, with its iron ore exports to China amounting to 123 million tonne in 2009, accounting for 25% of China’s total iron ore imports in the year in question.

    However, the Indian government has since restricted iron ore exports by increasing export taxes and railway freight charges, as part of its efforts to support Indian domestic steel production. In the months from June to September 2012, India’s iron ore exports to China amounted to 4.82 million tonne, 2.53 million tonne, 1.625 million tonne and 788,000 tonne respectively, indicating sharp MoM declines.

    Source – SteelOrbis
    South Africa may replace India third iron ore supplier to China
     
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  3. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    Excellent. Looks like all the stringent action by GoI is bearing fruit, finally
     
  4. pmaitra

    pmaitra Moderator Moderator

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    Very good. India should be off the list of raw material exporters. Let's make finished goods and export, and starve PRC from getting cheap ores.
     
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  5. Tianshan

    Tianshan Regular Member

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    the downside is that if you export less raw materials to us then your deficit will go up.

    unless you wil l compensate with more exports of something else.
     
  6. Known_Unknown

    Known_Unknown Devil's Advocate Stars and Ambassadors

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    ^^India can export machinery to China so you won't need all that iron to produce your own. Plus, higher profits on machinery exports than iron ore. :)
     
  7. Tianshan

    Tianshan Regular Member

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    if you can produce machinery at a good value, then sure we'll buy it.
     
  8. ShabiKB

    ShabiKB Tihar Jail Banned

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    I admire your positive mentality.
     
  9. Mad Indian

    Mad Indian Proud Bigot Veteran Member Senior Member

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    And I your Trolling capacity:thumb:


    After all, you must have had some good practice:hehe:
     
  10. Known_Unknown

    Known_Unknown Devil's Advocate Stars and Ambassadors

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    ^^Great, then let's sign the deal. This is easy, if only you and I were the leaders of China and India, we would resolve all our differences in one afternoon over a cup of chai or green tea. :drunk2:
     
  11. ShabiKB

    ShabiKB Tihar Jail Banned

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    This is very tricky though, taxes are also imposed on railway, if you want to stop exporting just tax on mines or exporters, taxing on transportation is far from normal. I bet there is some dark box operation from interest groups either in the cabinet or in the lobby.

    It does not hurt China anyways, since the price we got from other places are even cheaper.
     
  12. Tianshan

    Tianshan Regular Member

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    it really is that easy.

    business follows the money. if we can make eventual profits from buying something of good value then it will be bought.
     
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  13. Mad Indian

    Mad Indian Proud Bigot Veteran Member Senior Member

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    Looks to me like the South Africans under cut us rather than we doing something on our own... Any links for your claim??
     
  14. ShabiKB

    ShabiKB Tihar Jail Banned

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    One of the SA iron ore mine company is headed by an Indian though. Gandhi himself is from SA as well.
     
  15. Mad Indian

    Mad Indian Proud Bigot Veteran Member Senior Member

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    Is that what your masters taught yo? That Gandhi was from SA?:rolleyes:
     
  16. pmaitra

    pmaitra Moderator Moderator

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    Yes, you are correct, we will have a deficit if we don't earn enough forex by exporting raw ores. However, if we had the manufacturing base in India, we could earn many times more forex, because of the following reason:
    Cost of raw materials << Cost of raw materials + technology + labour

    Now this is the question to everyone: Will a restriction on export of raw materials force Indian exporters to diversify and invest in more value and technology added industries?

    E.g.: When will we start making gearboxes and engines for cars like BMW and Merc-Benz?
     
  17. Tianshan

    Tianshan Regular Member

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    you are right.

    the worst are those oil producing countries that ship raw crude to other countries who can refine it, then they re-import the petroleum..

    if you give companies incentive to process it first they will eventually do it,
     
  18. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    :lol: sure you would. China is far too protectionist for that. CCP would slap 50 percent tariffs before that would happen.
     
  19. roma

    roma NRI in Europe Senior Member

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    so after failing to hoodwink india , they are now hopinfg to be more successful with s africa - shouldnt we whisper into their ears and give them a better deal ?=
     
  20. pmaitra

    pmaitra Moderator Moderator

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    Give whom a better deal? What kind of deal? Please elaborate.
     
  21. amoy

    amoy Senior Member Senior Member

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    Re: South Africa to Replace India as China's Third Largest Ore Supplie

    Since 1993, China turned into an oil importer from an exporter. By the end of 1998, China had been exporting its oil at a price 30% lower than its domestic market. China only suspended crude oil export in 2004. China also exported a large quantity of coal.

    Many countries did/do that for "primitive accumulation" of Forex at a certain stage. The difference may be some fail to climb up the value chain. Instead they are addicted to export of raw materials.
     

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