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Indian iron ore demand won't match China

Time:[3/30/2012]   Hits:1808
Ms Laura Brooks commodities market analysts CRU said that India will eventually take over from China as the main engine of growth for the iron ore market but its consumption will be less intense.

Compounding the new sober outlook for iron ore were comments at a conference in Perth, Ms Brooks said that India's strong appetite for iron ore would not totally make up for lower Chinese iron ore consumption. She told delegates that "India is becoming the fastest growing major economy in the post 2015 period, however, (economic) growth in India is expected to peak in the eight per cent range, rather than the 10% achieved in China.”

"Furthermore, we expect growth in India to have a less metal-intensive character as unlike China, it is less focused on the manufacturing sector."

She said global supply of iron ore would remain tight in the short term as India further restricted iron ore exports because it needed to keep what it produced domestically as its industrialization continued.

Ms Brooks further said that "Indian exports are falling rapidly due to increasing internal demand for steel mills and the challenging development environment for new projects.”