China, India far from signing long-term ore contracts
The day by day increase in the
iron ore consumption of
India's domestic steel industry will make it difficult for
China to sign long-term
iron ore supply contracts with Indian miners.
China's largest steelmaker,
Baosteel, is eager to sign long-term
iron ore supply contracts with Indian iron miners. However,
India's largest private sector steel maker,
Tata Steel, expressed concern about
India's
iron ore exports. Tata argues that the government should discourage
iron ore exports since the interests of Indian producers must come first.
An official from the
China Chamber of Commerce for Metals Minerals & Chemicals (CCCMC) said that another problem that makes the signature of long-term contracts between
China and
India difficult is that
India's ore industry is widely scattered, unlike
Brazil and
Australia.
CCCMC reportedly is organizing a September visit to
India in an attempt to establish long-term relationships with Indian ore suppliers.