Hey Fellas
This is incredible news!
The Central Indian govt is considering banning iron ore exports completely! If this happens, this will mean approx the supply of 100Mt of iron ore will disappear if this occurs!
The price of iron ore has already hit $142 and the Kanatarka ban hasn't started yet!!!
Even if the Indian Govt restricts supply and they still export 50mt per year this will mean a serious shortage of the mineral for CHina who needs an extra 50-60Mt on top of their 600Mt per annum consumption!
Australia and Brazil are exporting approx 90% of their capacity at the minute, this rose to 100% during Q1 2010, which pushed the price to $195 per tonne! It will take 12-18 months of significant investment for these two markets to replenish the world market with the lost 50Mt! If its more, the restriction will be more severe! And the world market will need another 50Mt because of natural growth by then!
There aint enough dirt to go around!!!!
Let's hope the ban restricts iron ore exports from India to less than 50Mt!
http://www.vamban.com/news/central-government-in-favour-of-banning-iron-ore-exports/
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