India's Biggest Iron Ore Producer Just Fired A Shot Across China's Bow

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Panaji: India's Iron Ore will Decline Gradually in Future: Expert

India's Iron Ore will Decline Gradually in Future


India foresee severe decline in the Iron Ore exports considering the growth of Steel industries in the country and also competition from other global players like Australia and Brazil, a senior official said.

Dr A S Firoz, Chief Economist, Economic Research Unit (ERU), Ministry of steel said that it is not the government policies but the market forces that will result in the decline of the iron ore export from the country, which is currently pegged at 120 million tons at present.

Participating in the International iron Ore and Steel Making Raw materials conference here in Goa, Firoz said that there would be gradual decline of iron ore from India whether there are restriction or no restriction.

"It would be decline to 30-40 million tons by 2016," he predicted.

The conference organized by Ore Team, an international research firm had representatives from countries like China and Indonesia.

Firoz said that the steel and raw material industry is passing through challenging time and new ideas are required to see what's ahead for both the industries.

"Global economies are not doing well. Chinese economy will also come with the pressure resulting in the reduced demand of iron ore as it will also affect the growth of steel industry," he stated.

The official claimed that 'if there is a demand the exports would be unviable proportion considering the infrastructural costs.'

"If price is 100 US dollars most of the mining companies would have just a break even.. Given the current road and railway freight nobody would be making money.. Long term iron ore price would remain about 90-100 US dollars which is not a great sign for Indian iron ore minors considering the infrastructure cost," Firoz commented.

In a positive sign, Firoz said that the Iron Ore would be in demand for the local Steel Industry, which is on a growth path. "If all the steel industry projects are completed in time, there would be huge demand for the iron ore, which would restrain the exports," he predicted.

The ministry official said that the Indian exports would come under significant competition due to investments in countries like Brazil and Australia.

"Some of the projects in these countries have been delayed due to environment clearance. Within 4-5 years lot of mining capacity will be generated in the places like Australia and Brazil," he said.

"Many Chinese companies have invested in Australia.. Either they will bring those iron ore to their own country or do hedging," he said.

The two day long conference was held in Goa at the backdrop of crisis looming large over the Iron ore export industry in the state.
 
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India's iron ore export to China has colonial trade pattern: Official | TwoCircles.net

India's iron ore export to China has colonial trade pattern



Miramar (Goa) : In a sharp indictment of the huge volumes of Indian iron ore being shipped to China without proper planning, a senior official of the central steel ministry Friday equated bilateral trade between India and China to "colonial trade".

Addressing a two-day International Iron Ore & Steel Making Raw Materials Conference at a resort near Panaji, the ministry's deputy chief economist Susmita Dasgupta said coal and iron would soon be major issues to determine national politics and advocated caution against plundering finite national resources, which only enriched another nation.

"India exports iron ore to China and imports manufactured goods from that country. Not only India, even the markets of the US are flooded with Chinese goods. We must remember natural resources are a very finite matter. If we are surrendering our natural resources for manufactured goods from another country, it is a colonial pattern of trade," she said.

"India is not operating out of a long-term plan or vision with respect to its natural resources," Dasgupta further said.

She further said that India should emulate the US and Australia and cobble together solid and comprehensive policy document on mining that should be in place to ensure that interests of those other than the mine owners are not harmed in any way by the industry.

"In the US, mining laws are very strong. Consumers can take miners to court if their interests are jeopardized. You can't misuse your powers as a coal mine owner," she said.

"The official document of the Australian government shows that there is a gender disparity in the mining sector. As wages are going down badly, more women are being employed as miners for wages significantly less as compared to male miners," Dasgupta said, adding that the Australian government had officially declared that mining was "not a sustainable activity".

"India should look forward to similar documents for making mining activities equitable and more sustainable. More than tracking down the problem of illegal mining, it is also important to see where miners are putting their profits," she further said.
 

sugnasteels

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http://www.businessinsider.com/orissa-india-iron-ore-china-2011-1

Orissa, India's biggest iron ore producer, has put through a proposal to the central government to place a ban on exports in order to protect its domestic market, according to Reuters. If the proposal goes through, China which gets about 100 million tons from Indian annually, will be the country hardest hit.

The state government has asked Orissa, which is state owned, to keep 70% of its iron ore lumps and 80% of its chromite ore for local use, according to The Economics Times. The state of Karnataka also banned exports in July last year to deter illegal mining.

China relied on India for about 20% of its iron ore imports in May which dropped to 6.4% after the Karnataka ban according to China Daily.

Global prices have already been affected by a dip in coking coal supplies from Australia. Floods in Australia have cut 5%, or about 14 million tons, of global coking coal supplies, according to Reuters.

Iron ore costs have more than doubled in the last two years because of rising demand in India and China. Prices in China are now expected to soar an additional 7% this quarter according to Bloomberg.

Read more: http://www.businessinsider.com/orissa-india-iron-ore-china-2011-1#ixzz1Aq8n29If

It is always a good strategy to hit where it hurts. However, the counter action of China should be evaluated. We should ensure that bulk drugs imported from China for Pharma is not affected.
 

Lonewolf

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It is always a good strategy to hit where it hurts. However, the counter action of China should be evaluated. We should ensure that bulk drugs imported from China for Pharma is not affected.
Sir this is 10 year old news
 

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