BackCVRD forecasts Indian ore exports falling to 89 MT in 2011
CVRD forecasts Indian ore exports falling to 89 MT in 2011
Premium
PTI
New Delhi: Global iron ore major Companhia Vale Do Rio Roce (CVRD) forecasts Indian ore exports falling to 89 million tonnes from 92 MT by 2011 because of high production costs, infrastructure bottlenecks and potential government restrictions on exports of high-grade ores.
Though more than a quarter of China’s iron ore imports came from spot suppliers in 2006, mainly from India, a major part of this supply was unsustainable in the long run, Vicent Wright, head of commercial administration for iron ore at CVRD told the Latin American Iron and Steel Institute conference in Colombia, the Steel Business Briefing (SBB) reported.
“This is because of high production costs, infrastructure bottlenecks and potential government restrictions on exports of high-grade ores," it said.
“However, CVRD forecasts Indian exports falling from 92 MT in 2006 to 89 MT in 2011," it said.
Wright said world crude steel production could reach 1.5 billion tonnes by 2010, up from 1.2 billion tonnes in 2006, of which China could produce 635 million tonnes, the SBB said.
Seaborne demand for iron ore might reach one billion tonnes by 2010, of which India would be accounting for 100 million tonnes and this is likely to mean an increase in iron ore prices which could be passed on to the buyers.
India would be shipping about 100 million tonnes of iron ore by 2010 mostly to China, Japan and South Korea. “We would be exporting about 100 million tonnes of iron ore by 2010. We would not be able to export beyond that owing to infrastructure problems and rising freight costs," Secretary General of Federation of Indian Mineral Industries (FIMI) R K Sharma told PTI.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
