Wednesday, May 18,
After scarping the Long term supply contracts for Iron ore, Industry experts now want to de-link Indian iron ore prices from global levels.*
The issue is being highly debated among industry players where in they suggest a new benchmark in iron ore pricing based on Chinese and Indian cost patterns should be formed.
So far, the prices were fixed on negotiations between Japanese steel mills and selected powerful Australian miners, despite India and China being the world’s two fastest growing steel markets.
According to Malay Mukherjee , CEO of Essar Steel “It is unfair” on the move to buy at global price levels. “India is one of the few countries where Greenfield capacities are still being built, while elsewhere there are only expansions of existing capacities. Already our cost of setting up a unit is high due to steep interest charges. At the same time, we have to pay an international price for a raw material which is mined here in India”
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