India’s iron ore output in the financial year ending March 2013 is likely to halve over last year due to a freeze on mining in key states following government probes aimed at checking illegal mining, industry officials said. “We are fighting in courts for a re-start of the mines, but if the same situation drags on, then our output will drop even further next year,” said an industry official told Indoasiancommodities.com.
With profits down a whopping 98 percent due to falling demand, European tariffs and high raw material costs, China's steel makers are struggling to come with new strategies to reinforce their dominant global position. The China Iron and Steel Association says the industry was going through the toughest period since it was founded in 1975, reports China Daily.
Base metals, which mainly comprise of copper, aluminum, nickel, lead, zinc and tin are used in industrial and infrastructure related activities. Prices of base metals thus would be derived from the overall demand from these activities. The demand for the base metals in turn would depend on the overall global economic growth of the nations, particularly the key consuming nations. The major consumers of the metals are predominantly China, the US, Europe, Japan and South Korea.
MINING CLAMPDOWN CREATES IRON PROBLEMS FOR INDIA
India, once a net exporter of iron ore, has turned into a key importer of the raw material over the years thanks to a clamp down on illegal mining in key producing states and regulatory bottlenecks.