This document provides an overview of the global iron ore market including production, consumption, trade, and pricing. It discusses key producing and consuming countries as well as India's role as a major producer and exporter. The document outlines factors influencing iron ore prices and provides a price index from 2011. It also summarizes the relationship between iron ore, iron, and steel and examines demand and supply dynamics in the market.

1. IRON ORE

2. Extracted & Refined
by:-
AFTAB.MULLA

3. AGENDA
 Introduction  Development
 History  Demand and Supply
 Current Scenario  Impact on Economy
 Price forecast  Contract Specification
 Uses of Iron Ore  Conclusion
 Relation Between Iron  Recommendations
and Steel  Bibliography

4. INTRODUCTION
 Iron Ore is the Heart of Steel.
 Classification
– More than 54%
– Less than 54%
 Consists of Rocks and Minerals from which metallic
iron can be economically extracted.
 Raw Material for Pig Iron.

5. HISTORY
 The first iron production started in the Middle
Bronze Age but it took several centuries before iron
displaced bronze.
 Iron working was introduced to Greece in the late
11th century BC.
 The spread of ironworking in Central and Western
Europe is associated with Celtic expansion
 In 1960s and 1970s due to high demand with
upgraded Technology in Japan, it marked the Bench
mark in Production.

8. GLOBAL SCENARIO
Top 5 iron ore Producing Countries
1.China 2. Australia 3. Brazil 4. India 5. South Africa
Top 5 Consuming Countries
1.China 2. Japan 3. India 4. USA 5. Russia
Top 5 Exporting Countries
1.Australia 2. India 3. brazil 4. Canada 5. South Africa
Top 5 Importing Countries
1.China 2. Japan 3. South Korea 4. Germany
5. Taiwan

10. INDIAN SCENARIO
 Steel Prices (influencing factors)
 Domestic demand
 Supply conditions
 International prices
 Import and Export Duties
 Government and different producer and consumer
associations regularly monitor steel prices.
 India Reserves 25 billion tons (6% of Global)
 Ranked 5th – High Quality Reserves
 4th Largest Producing country
 2nd Largest Exporting country

11. Price Index
Month Price ($) Change (%)
Mar-11 169.36 -9.52%
Apr-11 179.26 5.85%
May-11 177.1 -1.20%
Jun-11 170.88 -3.51%
Jul-11 172.98 1.23%
Aug-11 177.45 2.58%
Sep-11 177.23 -0.12%
Oct-11 150.43 -15.12%
Nov-11 135.54 -9.90%

12. Per Capita Steel Consumption
Place Kgs
India 45
China 350
World Average 150

13. PRICE FORECAST
• Prices are currently high due to over capacity build
up and it expected to come down to more economic
level.
• The cost of new potential iron ore systems (e.g. West
Africa and Australia) has increased recently due to the
current commodity price boom and the consequent
equipment and skill shortages.
• Demand for Steel: Steady growth of steel demand is
expected until 2025

14. USES OF IRON ORE
About 98% of iron ore is used to make steel
A very small amount of the consumption
– used in magnets, metallurgy products, auto parts,
tracer element in biochemical research. Iron blue:
in paints, printing inks, plastics, cosmetics (eye
shadow), artist colors, paper dyeing, fertilizer
ingredient, industrial finishes, etc.

15. RELATION BETWEEN IRON AND STEEL
 Steel is an Alloy.
 Iron is an Primary element.
 Iron ore being primary raw material for Iron and steel
making constituents 53% by weight but 11% only by
cost.

16. DEVELOPMENT
 India, Asia's 2nd Largest economy announced a 50%
jump in export duties to 30% from 20%, to conserve
supplies for domestic steelmakers.
 Improved Performance due to;
– High volume
– Government Policies
– Increased operating efficiency
– Financial restructuring

17. Consumption Pattern of
Iron Ore
• Domestic Consumption 45%
• Exports 55%
17

18. DEMAND AND SUPPLY
• India's iron ore exports are likely to be 75%
lower than previously expected in the quarter
ending in March as a rise in export duties kicks
in as part of the government's push to
conserve supplies for domestic steelmakers.
• No immediate ‘boom’ in demand in the Indian
economy is expected, but a rather moderate
short-term and medium-term growth path,
only taking off beyond 2015.

19. IMPACT ON ECONOMY
• Exports were declined to 50 million tons from
97 million tons in current financial year(2011-
2012).
• Given that India had exported about 50
million tons in the 9 months to December, it is
likely to ship only another 5 million tons in the
three months to March 31.

20. Contract specification
Symbol IRONORE
Contract start day 1st working day of contract launch month.
Last trading day Last calendar day of the contract expiry month. If last day is
holiday or Saturday then preceding working day.
Trading period Mondays through Saturdays
Trading session Monday-friday:10.00 a.m. to 11.30 p.m.
Saturday :10.00 a.m. to 02.00 p.m.
Trading units 100 DMT
Quotation/Base value Rs/DMT
Maximum order size 5000 DMT
Tick size(minimum Re 1/DMT
price movement)
Initial margin Minimum 8%/based on SPAN whichever is higher

21. CONTRACT LAUNCH
CALENDAR OF IRONORE
CONTRACT LAUNCH MONTHS CONTRACT EXPIRY MONTHS
October 2011 January 2012
November 2011 February 2012
December 2011 March 2012
January 2012 April 2012
February 2012 May 2012
March 2012 June 2012
April 2012 July 2012
May 2012 August 2012
June 2012 September 2012
July 2012 October 2012
August 2012 November 2012
September 2012 December 2012

22. CONCLUSION
• Sustained and economical supply of iron ore with
consistent quality is must for being competitive.
• It is a key product and raw material as well
required in manufacturing of Iron, Steel and
stainless steel.
• It costs less and at a same time it weighs more
comparatively.
• Government’s focused approach and
interventions are facilitating fast track growth.

24. Bibliography
• mcxindia.com
• aurthorstream.com
• moneycontrol.com
• matrixinfobiz.com