India is restricted to export to Australia
As the bullish mentality for the future is obvious, traders receive more goods and less resources, which has caused the mine price to rise in the short term. It is expected that the Indian market will remain high in the near future or will be restricted to iron ore exports. The policy, which is likely to make the iron ore market, which has been trekking on the road of rising prices, even worse.
After the Indian mining province of Orissa announced a ban on iron ore exports, the Indian state government is currently considering submitting a bill to the Indian government on the ban on iron ore exports to better meet India. Raw material demand of domestic steel producers.
The Orissa government recently requested Orissa Mining Corporation (OMC) to supply 70% of its iron ore and 80% of its chrome ore to the local area to ensure a stable supply of raw materials.
Orissa is a major producing province in India and an important province for exporting Chinese iron ore. In the 2009/2010 fiscal year (as of March 31, 2010), Orissa's iron ore production was 77.19 million tons, of which 16.35 million tons were exported to China and other countries.
Liu Huifeng, an analyst at the "My Steel" Research Center, pointed out that India is China's third largest importer of iron ore. Since the beginning of 2010, it has adopted a series of measures to increase iron ore export tariffs and restrict iron ore exports. At present, India's iron ore export tariff has gradually increased from 10% at the beginning of 2010 to the current 25%, which has had a significant impact on India's export of iron ore. "It can also be seen from the relevant statistics that the proportion of China's Indian mine imports in total iron ore imports in 2010 fell from 23.3% in April to 6.4% in October, which is at a historical low. If the situation continues, it will intensify the monopoly of the three major mines."
At the same time, the impact on the iron ore market is the bad weather in Australia. The Australian Bureau of Meteorology said that in the next three months, the majority of the Pilbara region will have a 70% chance of experiencing excessive rainfall. It is expected that there will be 11 to 12 hurricanes in the Pilbara region in the coming months, which is also above average. Iron ore exports in this region account for one-third of the world's total exports.
Previously, heavy rains in Australia have already had a significant impact on coal production and exports in Queensland, which has led to an increase in global coal prices, and if heavy rains are transferred to the Pilbara region, it is bound to bring global ore supply and prices. It is not good.
At present, the price of spot iron ore has been continuously rising. The price of 63.5% of Indian powder ore exported to China has reached 181~184 US dollars/ton, the highest level since May last year.
"Affected by the long-term agreement price in the first quarter, due to the obvious bullish mentality for the future, traders receive more goods and less resources, which has caused the mine price to rise in the short term and is expected to remain high in the near future. "My Steel" analyst Zeng Jiesheng analyzed the reporter.
According to the reporter's understanding, the current domestic traders are optimistic about the market demand and prices in the later period. They are not eager to sell the ore in their hands, and they choose to hoard up, which also makes the port inventory level climb. The high inventory not only means huge risks, but also causes the market demand to be artificially high, thus bringing more chips to the iron ore price increase of the three major mining companies.
As the bullish mentality for the future is obvious, traders receive more goods and less resources, which has caused the mine price to rise in the short term. It is expected that the Indian market will remain high in the near future or will be restricted to iron ore exports. The policy, which is likely to make the iron ore market, which has been trekking on the road of rising prices, even worse.
After the Indian mining province of Orissa announced a ban on iron ore exports, the Indian state government is currently considering submitting a bill to the Indian government on the ban on iron ore exports to better meet India. Raw material demand of domestic steel producers.
The Orissa government recently requested Orissa Mining Corporation (OMC) to supply 70% of its iron ore and 80% of its chrome ore to the local area to ensure a stable supply of raw materials.
Orissa is a major producing province in India and an important province for exporting Chinese iron ore. In the 2009/2010 fiscal year (as of March 31, 2010), Orissa's iron ore production was 77.19 million tons, of which 16.35 million tons were exported to China and other countries.
Liu Huifeng, an analyst at the "My Steel" Research Center, pointed out that India is China's third largest importer of iron ore. Since the beginning of 2010, it has adopted a series of measures to increase iron ore export tariffs and restrict iron ore exports. At present, India's iron ore export tariff has gradually increased from 10% at the beginning of 2010 to the current 25%, which has had a significant impact on India's export of iron ore. "It can also be seen from the relevant statistics that the proportion of China's Indian mine imports in total iron ore imports in 2010 fell from 23.3% in April to 6.4% in October, which is at a historical low. If the situation continues, it will intensify the monopoly of the three major mines."
At the same time, the impact on the iron ore market is the bad weather in Australia. The Australian Bureau of Meteorology said that in the next three months, the majority of the Pilbara region will have a 70% chance of experiencing excessive rainfall. It is expected that there will be 11 to 12 hurricanes in the Pilbara region in the coming months, which is also above average. Iron ore exports in this region account for one-third of the world's total exports.
Previously, heavy rains in Australia have already had a significant impact on coal production and exports in Queensland, which has led to an increase in global coal prices, and if heavy rains are transferred to the Pilbara region, it is bound to bring global ore supply and prices. It is not good.
At present, the price of spot iron ore has been continuously rising. The price of 63.5% of Indian powder ore exported to China has reached 181~184 US dollars/ton, the highest level since May last year.
"Affected by the long-term agreement price in the first quarter, due to the obvious bullish mentality for the future, traders receive more goods and less resources, which has caused the mine price to rise in the short term and is expected to remain high in the near future. "My Steel" analyst Zeng Jiesheng analyzed the reporter.
According to the reporter's understanding, the current domestic traders are optimistic about the market demand and prices in the later period. They are not eager to sell the ore in their hands, and they choose to hoard up, which also makes the port inventory level climb. The high inventory not only means huge risks, but also causes the market demand to be artificially high, thus bringing more chips to the iron ore price increase of the three major mining companies.
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