Despite the global economic crisis, Sinosteel India, the largest exporter of iron ore from India to China, is expecting to supply more steel than it did last year.
Zhongtao Wang, director, Sinosteel India, said that last year the company supplied approximately 11 million tons of iron ore from India and this year it would ship more than that. However, he clarified that the final figures would only emerge after the first quarter of the financial year.
He was speaking on the sidelines of the International Steel Seminar in Kolkata. Total imports of iron ore into China was 70-75 million tons from India, significantly lower than in 2007.
Mr Wang said, “We will have to overcome the difficulties of the last quarter caused by the financial crisis. Sinosteel happens to be a comprehensive service company for the Chinese steel industry, providing raw material, logistics, sales service and technical supply.
A lot would also depend on the Chinese policy which would be issued after the spring festival. “Government may issue some policies based on general consideration, financial loan and something on transporation. These would be the linkages for the steel industry,” said Wang.
On the outlook for iron ore pricing, Wang said, the current market price was close to reasonable levels. “In 2007, all the prices caused serious inflation, now prices have cooled down and are more rational. Prices are also more in tandem with the final product price. But all this will become clear after the first quarter,” said Wang.
China imports more than half of its iron ore requirements while exports of hard coking coal and coke are controlled through licensing.
India has approximately 23.59 billion tons of iron ore scattered in states like Jharkhand, Orissa, Chhattisgarh, Karnataka and Goa. Of this, 6.311 billion tons is proven reserves and balance are probable and possible reserves.
Source: The Hindu
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