It has been more than 20 years since Sinosteel Corporation engaged in India iron ore trading, and keeps in leading position relied on appendage advantage and high quality service. Ever since the company was established in 2005, Sinosteel India was active in import of India iron ore in a large scale, and made a great contribution to Indian mineral trade and Sinosteel Corporation’s trade volume enhancement
| Year | China import India iron ore declaration quantity (Unit: MT) | Sinosteel Corporation import India iron ore declaration quantity (Unit: MT) | The proportion of Sinosteel Corporation(%) |
|---|---|---|---|
| 2005 | 6858 | 579 | 8.4 |
| 2006 | 7475 | 865 | 11.6 |
| 2007 | 7953 | 1021 | 12.8 |
| 2008 | 9104 | 687 | 7.6 |
| 2009 | 10750 | 1281 | 11.9 |
| 2010 | 9667 | 1006 | 10.4 |
| 2011 | 7306 | 549 | 7.51 |
| 2012 | 3306 | 192 | 5.8 |
Remaining active and dominant, Sinosteel India developed reputable suppliers, set up supplier classification system and gradually improved the purchasing mechanism. As a result, we eliminated many unqualified suppliers, reduced the contract default rate and quality problems so that to guarantee the India iron ore resource quality to our domestic customers in China.
Since 2009, Sinosteel India made efforts to develop its business in India by cargo purchase in local market. We developed plots in various Indian ports to collect cargo and supply to China in ensuring quality and timely delivery.
The advantage of plot mode on one hand is to reduce the risk of cargo quality, on the other hand to set up a stable stock in India ports to meet the quality requirement in case there was short-fall in shipments volume.
| Sinosteel India Iron Ore Plot Situation | ||||
|---|---|---|---|---|
| Plot | Cargo Grade | Plot Saturation Capacity | Yearly Saturated Operation Capacity | Character |
| Paradip | Medium-High grade 60%-63% | 40,000MT | 240,000MT | Business operation in rules and order, stable quality, but easily effected by local policy |
| Goa | Low grade 48%-54% | 80,000MT | 480,000MT | Low cost of purchase/logistic, abundant resource, but trading procedure complicated, high quality risk |
| Kandla | Medium-Low grade 54%-60% | 40,000MT | 160,000MT | Flexible operation and high mobility; but in a small scale, loading slowly and insufficient cargo supply |
| Vizag | Medium- High grade 60%-63% | 40,000MT | 160,000MT | Stable quality, the plot could cooperate with Paradip plot; but high cost of purchase/logistics |
| TOTAL | All grades 48%-63% | - | - | |
Sinosteel India could offer India iron ore as following specification:
| Typical Specification I | Basic/Minimum |
|---|---|
| Fe | 63.5%/63 |
| SiO2 | 3.5% |
| Al2O3 | 3.5% |
| P | 0.08% |
| S | 0.06% |
| Moisture | 8% |
| -0.15 mm | 40% |
| +10 mm | 10% |
| Typical Specification II | Basic/Minimum |
|---|---|
| Fe | 61%/60% |
| SiO2 | 5% |
| Al2O3 | 3.5% |
| P | 0.08% |
| S | 0.06% |
| Moisture | 8% |
| -0.15 mm | 40% |
| +10 mm | 10% |
| Typical Specification III | Basic/Minimum |
|---|---|
| Fe | 58%/57% |
| SiO2 | 7% |
| Al2O3 | 5% |
| P | 0.08% |
| S | 0.06% |
| Moisture | 8% |
| -0.15 mm | 40% |
| +10 mm | 10% |
| Typical Specification IV | Basic/Minimum |
|---|---|
| Fe | 54%/53% |
| SiO2 | 8% |
| Al2O3 | 7% |
| P | 0.08% |
| S | 0.06% |
| Moisture | 10% |
| -0.15 mm | 40% |
| +10 mm | 10% |
| Typical Specification V | Basic/Minimum |
|---|---|
| Fe | 50%/49% |
| SiO2 | 10% |
| Al2O3 | 8% |
| P | 0.08% |
| S | 0.06% |
| Moisture | 10% |
| -0.15 mm | 40% |
| +10 mm | 10% |