Monday, February 02, 2009
Monday, 02 February 2009
BS reported that with the closed steel mills in China resuming operations gradually, Indian exporters are hoping iron ore shipment to rise at least by 5.5% to match the last year’s level. In 2008, India’s total iron ore exports were recorded at 104.27 million tonne on high Chinese demand. However, during the 9 months period of the current financial year, total shipment declined by 5.5% to 64.47 million tonne from 68.15 million tonne in the corresponding period last year.
Mr RK Sharma secretary general of the Federation of Indian Mineral Industries said that “Though the demand for iron ore is currently low as Chinese traders are busy celebrating their New Year, we are confident that the shipment would pick up to match at least the last year’s level if not more.”
Mr Sharma said that the biggest advantage for Chinese iron ore importers, who buy about 85% of India’s iron ore shipment is the price of iron ore which is currently quoted USD 30 lower between USD 60 per tonne to USD 65 per tonne than the global benchmark price of USD 90 per tonne to USD 95 per tonne. Thus, large steel mills that contracted long term deal with raw material suppliers are at a loss in the current market sentiment.
Source: Business Standard