China, India far from signing long-term ore contracts

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.