{"id":1466,"date":"2023-02-01T12:55:15","date_gmt":"2023-02-01T12:55:15","guid":{"rendered":"https:\/\/tradersontrend.com\/?p=1466"},"modified":"2023-02-01T12:55:15","modified_gmt":"2023-02-01T12:55:15","slug":"iron-ore-set-to-rally-as-india-hesitates-to-export","status":"publish","type":"post","link":"https:\/\/tradersontrend.com\/h\/2023\/02\/01\/iron-ore-set-to-rally-as-india-hesitates-to-export\/","title":{"rendered":"Iron Ore Demand on the Rise: India to Keep Majority of Production In-House"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1466\" class=\"elementor elementor-1466\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7495d4a5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7495d4a5\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-28c3edfd\" data-id=\"28c3edfd\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-44ff0387 elementor-widget elementor-widget-text-editor\" data-id=\"44ff0387\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.21.0 - 26-05-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>Iron ore exports from India are expected to stay low, as the world&#8217;s fourth-largest producer saves more of the material for its own use, according to commodity analytics firm Kpler.<\/p><p>&#8220;<em><a href=\"https:\/\/ibm.gov.in\/writereaddata\/files\/06062017100713Iron%20and%20Steel%202020_2.pdf\">Indian iron ore<\/a> exports \u2026 have really gone off in the last several months. And it is fairly symptomatic of extremely robust domestic consumption,<\/em>&#8221; said Reid I&#8217;Anson, Kpler&#8217;s senior commodity analyst, adding that this will continue throughout the year.<\/p><p>India&#8217;s iron ore exports fell by 90% year on year in October last year, after falling by as much as 96% in September.<\/p><p>India accounts for 9.2% of <a href=\"https:\/\/en.wikipedia.org\/wiki\/List_of_countries_by_iron_ore_production\">global iron ore production<\/a>. The greatest producer is Australia, which accounts for about 35% of global supply, followed by Brazil and China.<\/p><p>&#8220;<em>In terms of growth, India will be a standout economy in 2023&#8230; And I believe exports from India will stay sluggish as well, given they consume the majority of domestic production.<\/em>&#8220;<br \/><br \/><strong><span style=\"font-size: 24.5px; font-family: inherit;\">A 20% Increase?<br \/><br \/><\/span><\/strong><span style=\"font-family: inherit;\">The drop in India&#8217;s commodities exports comes, as China&#8217;s Covid reopening pushes commodity prices surging, and I&#8217;Anson predicts an &#8220;<\/span><em style=\"font-family: inherit;\">upward movement of 20%<\/em><span style=\"font-family: inherit;\">&#8221; in iron ore prices.<\/span><\/p><p>The benchmark 62%-grade iron ore price last traded at $123.37 per ton, up around 30% since December, when China announced a pullback of its &#8220;zero-Covid&#8221; restrictions.<\/p><p>Iron ore is generally used to <a href=\"https:\/\/en.wikipedia.org\/wiki\/Steelmaking\">produce steel<\/a>, which is utilized in construction and engineering projects \u2013 and both Asian countries are on course to use more of it.<\/p><p>&#8220;<em>You&#8217;ve got the comeback of the Chinese consumer, which is going to boost durables demand, and you&#8217;re going to see an improvement in the Chinese housing market,<\/em>&#8221; I&#8217;Anson said.<br \/><br \/><strong><span style=\"font-size: 24.5px; font-family: inherit;\">According to Refinitiv, China Accounts for Over 60% of Worldwide Iron Ore Exports.<br \/><br \/><\/span><\/strong><span style=\"font-family: inherit;\">&#8220;<\/span><em style=\"font-family: inherit;\">Downstream demand in China has begun to show some signs of optimism based on government support, notably for the construction sector, which is the country&#8217;s largest steel user,<\/em><span style=\"font-family: inherit;\">&#8221; Tamara Thorne, according to a senior analyst at Refinitiv Metals Research.<\/span><\/p><p>Demand for its neighbor is projected to be at a similar level.<\/p><p>&#8220;<em>We expect steel consumption in India to rise significantly faster than what we saw in the first nine months of the fiscal year (in 2022),<\/em>&#8221; said JSW Steel joint managing director Seshagiri Rao.<br \/><br \/><strong><span style=\"font-size: 24.5px; font-family: inherit;\">How Long Will it Continue?<br \/><br \/><\/span><\/strong><span style=\"font-family: inherit;\">B K Bhatia, secretary general of the Federation of Indian Mineral Industries, expects that iron ore shipments in 2023 will be significantly higher than those in 2022. India&#8217;s iron ore exports were hampered by a 50% tariff on low-grade iron ore exports, which was repealed in late November.<\/span><\/p><p>However, while India&#8217;s iron ore <a href=\"https:\/\/www.thehindubusinessline.com\/markets\/commodities\/iron-ore-exports-show-improved-bookings-in-december\/article66274504.ece#:~:text=India's%20iron%20ore%20exports%20witnessed,the%20full%20month%20last%20year.\">shipments have increased<\/a> since December as a result, the shift may not be sustainable, according to Kpler&#8217;s I&#8217;Anson. He believes that exports will be unlikely to rebound to the levels achieved in 2020 and 2021.<\/p><p>&#8220;<em>The amount to which loadings have recently increased is unlikely to be sustainable for long,<\/em>&#8221; he said.<\/p><p>However, India&#8217;s iron ore exports would not be the most important contributor to price volatility.<\/p><p>&#8220;<em>The ability of Rio Tinto in Australia and Vale in Brazil to function up to the constraints of their supply systems is the most important swing element,<\/em>&#8221; said CLSA research analyst Robert Stein.<\/p><p>Both iron ore powerhouses anticipate flat year-on-year production on the low side, and a 5% growth on the high side.<\/p><p>&#8220;<em>Working capital has stabilized but is relatively elevated due to commodity price volatility, higher raw material prices, and global supply chain pressures,<\/em>&#8221; Rio Tinto noted recently in its <a href=\"https:\/\/www.riotinto.com\/-\/media\/content\/documents\/Invest\/Financial-news-and-performance\/Production\/rt-fourth-quarter-operations-review-2022-pdf.pdf?rev=950c7bb1f1834511b8a9ce539c3e51be\">fourth-quarter production figures<\/a>.<\/p><p>Another important factor is China.<\/p><p>&#8220;<em>Demand is still impacted by the Chinese property deleveraging program, and while optimistic sentiment may contribute to price increases in any given week, [but] to sustainably achieve such levels, we would need to see widespread property stimulus or support,<\/em>&#8221; Stein said.<\/p><p><em>For More Stocks And Investment Related News, Click\u00a0<a href=\"https:\/\/tradersontrend.com\/\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/tradersontrend.com\/&amp;source=gmail&amp;ust=1675342032196000&amp;usg=AOvVaw073Yiyrju8LtL0Kc_EwU49\">Here<\/a>.<\/em><\/p><p>\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Iron ore exports from India are expected to stay low, as the world&#8217;s fourth-largest producer saves more of the material for its own use, according to commodity analytics firm Kpler. &#8220;Indian iron ore exports \u2026 have really gone off in the last several months. And it is fairly symptomatic of extremely robust domestic consumption,&#8221; said&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1467,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[120,309,330,560],"class_list":["post-1466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsletter","tag-china","tag-india","tag-iron-ore","tag-steel"],"_links":{"self":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/comments?post=1466"}],"version-history":[{"count":0,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1466\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media\/1467"}],"wp:attachment":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media?parent=1466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/categories?post=1466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/tags?post=1466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}