Banning Iron Ore shipment

[Hafizzz]

India Seeks Ban on Iron-Ore Shipments
India Seeks Ban on Iron-Ore Shipments as Local Demand Grows, Minister Says - Bloomberg

India, the world’s third-largest iron-ore exporter, should ban shipments overseas to ensure that local steelmakers have adequate supplies of the raw material, according to Steel Minister Virbhadra Singh.

The country will need increased quantities of iron ore to meet domestic demand from steel producers, so there was a need for a ban, Singh said at a seminar New Delhi today. Singh had said in May India will consider banning exports “if needed.”

An end to shipments from India would increase global competition for supplies, potentially boosting prices of the raw material from Australia and Brazil, the two biggest suppliers. China is the world’s largest steelmaker, accounting for 43 percent of output last month, while BHP Billiton Ltd., Rio Tinto Group and Vale SA are the top three iron-ore suppliers.

“Limiting exports is inevitable because rapid economic development in India will demand more iron ore to feed its steel mills,” Xu Xiangchun, chief analyst at Mysteel Research Institute, said from Beijing. “China has to look for new resources, such as Africa, as alternatives to Indian ore.”

India’s Karnataka state, the country’s second-biggest producer of iron ore, banned exports in July, prompting appeals from mining companies. The state-level ban may cut India’s exports 38 percent to 66 million tons this year, according to an estimate from the Federation of Indian Mineral Industries.

India’s steel production is expected to increase to 120 million tons by 2012, Singh said in August. India’s current output is estimated at about 72 million tons.

The irony is that it is OK for India to ban Iron Ore shipment but not OK
for China to cut down on Rare Earth shipment.

India needs Iron Ore for her local industry as much as China needs Rare Earth for her local industry too but China is condemn while India is not.

 

[justanobserver]

In the words of RamGorur: "Pakistanis are more Chinese than actual Chinese"

 

[Abhishek_]

Just for the record, GOI is neutral on the chinese rare earth issue. So if possible, please don't drag china in to this. You can however complain in some Japanese economic forum if it is causing so much heart ache to you.

On Topic: It is only a suggestion at this point, nothing concrete has been done by GOI.

 

[Hafizzz]

Just for the record, GOI is neutral on the chinese rare earth issue. So if possible, please don't drag china in to this. You can however complain in some Japanese economic forum if it is causing so much heart ache to you.

On Topic: It is only a suggestion at this point, nothing concrete has been done by GOI.

I was just doing a comparison and India was a good example because she bans Iron Ore shipment while China wanted to reduce export of Rare Earth.

 

[rubyjackass]

The allegiation is that China cut down on its rare earth production in response to Japanese
capture of its trawler. China is yet to convince the world that the cut back is because of production issues and not a retaliation.

Looks like justanobserver is right in your case.

 

[Abhishek_]

I was just doing a comparison and India was a good example because she bans Iron Ore shipment while China wanted to reduce export of Rare Earth.

read closely hafizz, the ban is simply a suggestion.

 

[lcloo]

I believe the suggestion of the ban is a simple supply and demand case, if domestic supply is just enough for domestic demand, there is no reason to export.

I think Indian will be a net importer of iron in future if her steel industries expand along with economy.

 

[conworldus]

Rare earth is a lot more strategic. It is used in F-22, precision bombs, etc..