INDIA'S IMPORTS OF IRON ORE ARE ON THE RISE ON GROWING DEMAND FROM MILLS
More demand from India for imports will help global mining companies, especially as some forecasters including the Australian government expect that China’s demand is poised to shrink as steel production tops out.
Inbound cargoes from April through July, the first four months of the current fiscal year, were 5.5 million tons, more than three times shipments in the year ago period, according to Commerce Ministry data. By contrast, exports dropped 40 percent on year to 5.1 million tons. Australia’s government expects annual imports to rise to 19 million tons by 2020, with exports at 8 million tons.
Seshagiri Rao, joint managing director of the country’s top mill JSW Steel Ltd., said, “If iron ore is available at competitive prices domestically, it won’t happen.That’s why we are requesting the domestic mining companies to adjust the prices in line with the quality of the iron ore. But the problem today is that even though the iron ore is getting mined, transportation is the issue.”
Fortescue Metals Group Ltd. doubled iron ore sales outside China to 8 percent in the year through June, and has experienced strong growth in cargoes to India, Chief Executive Officer Elizabeth Gaines said in an interview in August.
Steel mills in India are increasingly tapping the global market for iron ore as they find it difficult to transport the key raw material from local mines, and demand for the metal surges in response to the government’s ambitious plans to build out the nation’s infrastructure.
Read more on Sowoll.
Inbound cargoes from April through July, the first four months of the current fiscal year, were 5.5 million tons, more than three times shipments in the year ago period, according to Commerce Ministry data. By contrast, exports dropped 40 percent on year to 5.1 million tons. Australia’s government expects annual imports to rise to 19 million tons by 2020, with exports at 8 million tons.
Seshagiri Rao, joint managing director of the country’s top mill JSW Steel Ltd., said, “If iron ore is available at competitive prices domestically, it won’t happen.That’s why we are requesting the domestic mining companies to adjust the prices in line with the quality of the iron ore. But the problem today is that even though the iron ore is getting mined, transportation is the issue.”
Fortescue Metals Group Ltd. doubled iron ore sales outside China to 8 percent in the year through June, and has experienced strong growth in cargoes to India, Chief Executive Officer Elizabeth Gaines said in an interview in August.
Steel mills in India are increasingly tapping the global market for iron ore as they find it difficult to transport the key raw material from local mines, and demand for the metal surges in response to the government’s ambitious plans to build out the nation’s infrastructure.
Read more on Sowoll.
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