Global iron ore and coal trade flows seen increasing substantially - Report.

It is reported that there is good news for Indian players in iron ore and coal shipping, which form the major chunk of the country's Exim trade.

According to a latest market report by Norway's largest investment bank DnB Nor Markets, worldwide iron ore and coal trade flows are expected to increase substantially within the next 5 years.

The report titled 'Dry Bulk Outlook: Iron ore and coal' notes that iron ore exports, after subdued volumes in 2009, are expected to increase substantially during the next five years. From 2009 to 2015, iron ore port capacity will increase by 86.3% or an annual average growth of 10.9%. During the same period, iron ore exports will increase by 81.1%, representing an annual average growth of 10.4%. It also noted that Australia will remain the largest iron ore exporter in the world, followed by Brazil.

According to the report, the capacity of coal terminals is expected to grow by 35.5%, equal to an average annual growth of 5.2%. In the same period, actual coal exports will grow by 59.5%, representing an annual average growth of 8.1%. Australia, the report said, will also remain as the top exporting country of coal, followed by Indonesia.

The ports included in the study accounted for about 94.8% of global seaborne iron ore trade, while the corresponding proportion for coal was 93.2%. The seven Indian ports that are covered in the report include Paradip, New Mangalore, Mormugoa, Ennore, Chennai, Visakhapatnam and Haldia Complex.

Industry statistics indicate that while India imports about 90 million tonnes of coal annually, it exports more than 120 million tonnes of iron ore. Of this, coal trade is expected to grow exponentially thanks to the numerous power projects and huge expansion programs unveiled by the steel industry.

Source : steelguru.com