Despite a short-term dip in demand, Indian iron ore exporters see a pick up in orders from Japan in the long term once the earthquake and tsunami-battered nation embarks on initiatives to rebuild the infrastructure.
Japan is the second largest market for Indian iron ore accounting for about 5% of the total exports.
Mr RK Sharma secretary general of Federation of Indian Mineral Industries the apex body of iron ore producers and exporters said that “There could be a decline in demand in the short term. However, we expect a pick up in demand in the long term once Japan starts the rebuilding process.”
Mr S Sridhar executive director of Goa Mineral Ore Exporters Association said that “It is too early to comment on the impact. However, there have been no order cancellations. The steel mills in Japan are largely unaffected by the earthquake. Only one or two are affected. It is too early to say about the demand as people have not been coming to offices. If they require steel to rebuild, they will obviously need iron ore.”
Sources at NMDC Ltd said the company's long term agreements with Japanese buyers are coming to an end this month. They said that “LTAs are currently being worked out. Only once they are finalized, we will get a clear picture.”
Japan is the second largest market for Indian iron ore accounting for about 5% of the total exports.
Mr RK Sharma secretary general of Federation of Indian Mineral Industries the apex body of iron ore producers and exporters said that “There could be a decline in demand in the short term. However, we expect a pick up in demand in the long term once Japan starts the rebuilding process.”
Mr S Sridhar executive director of Goa Mineral Ore Exporters Association said that “It is too early to comment on the impact. However, there have been no order cancellations. The steel mills in Japan are largely unaffected by the earthquake. Only one or two are affected. It is too early to say about the demand as people have not been coming to offices. If they require steel to rebuild, they will obviously need iron ore.”
Sources at NMDC Ltd said the company's long term agreements with Japanese buyers are coming to an end this month. They said that “LTAs are currently being worked out. Only once they are finalized, we will get a clear picture.”
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