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China’s Dependence on Iron Ore Imports from Brazil and Australia May Increase
Sources report finished steel prices in India have soared 50% since January and inflation has reached 11.9%, the highest level during the past 13 years. In response, the Indian Government may ban exports of iron ore, in order to reduce prices of raw materials in the country and to help curb inflation. According to CBI data, China’s imports of iron ore from India accounted for 11% of the total iron ore imports, so if the Indian government does not allow to exports of iron ore, China’s dependence on Brazil and Australia will increase. Such a development would not be good news for China in the upcoming negotiations for 2009 iron ore contract prices.
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