Iron Ore Consumption And Trade
- 4093 Words
- 18 Pages
- Report
Iron Ore Consumption and Trade
Abstract
The paper discuss about the trend of iron ore in the global economy. The paper also describes about that currently, iron ore demand is less, reason behind the low demand is the declining demand of steel manufacturing, and demand of iron ore is limited, therefore slower economic activity around the globe particularly in China, which is the world's largest steel manufacturer and second largest economy. According to the information from U.S. Geological Survey (USGS) reserves Global iron ore totaled 160 billion tons of mineral, which equals about 79 billion tons of iron content. It should be noted, in analyzing the reserves, the grade of ore that is account. This factor is very important and becomes the key objective in determining which country presents the best quality resources. During our project, we came across the fact that despite the global recession, the trade of iron ore reached a record 955 million tons in 2009, an increase of 7.4% over the previous year. Thus, the incline in iron ore prices was because of the fact that the Chinese imports were higher, as a result of increasing demand combined with lower domestic production in China.
Table of Content
Abstract2
Chapter no. 1: Introduction4
1.1 Problem statement4
1.2 Theoretical framework5
Chapter 2: Literature Review6
2.1 Historical Overview6
2.2 The Current Trend in the Global Market6
2.3 Iron Ore8
2.4 Iron Ore Consumption9
2.5 World Production of Iron Ore9
2.6 Iron Ore Prices and Market Analysis10
2.6.1 Production Trends10
2.6.2 Production of Iron Ore Declined In 2009 but Deliveries Continued To Increase11
2.7 International Trade12
2.8 Iron Ore Pricing System - A Possible Catalyst13
Table II- Major Companies13
2.8.1 Vale S.A.13
2.8.2 Cliffs Natural Resources Inc. (CLF)14
Chapter 3: Methodology15
3.1 Pricing Methodology15
3.1.1 Price Outlook15
3.2 Iron Ore Pricing System - A Possible Catalyst16
3.2.1 The Market Trends and Prevalent Conditions17
Chapter no 4: Anticipated Result18
References19
Iron Ore Consumption and Trade
Chapter no. 1: Introduction
Iron ore had an amazing growth in eleven years; it is one of the important metals, which ignores every rising concern takes place during economic recession affecting the entire world. The research shows that an uninterrupted rally in iron ore, with prices trading just above the level of $10 in 2000 that has fascinated the entire world. It touched a high of $187 in 2011 (Williamson, 2012 pp. 548-577).
The Iron ore was actually extracted through the process of smelting at early 1800 to 1200 B.C and it is believed that it began in India. Thus, primarily it is mostly used in structural engineering applications for the purpose of maritime, in automobiles and for the general industrial (machinery) applications. Thus a wide uses of array helps to be in demand and making it a recession proof to some extent. But, this cannot be taken as an immune for the purpose economic growth.
1.1 Problem statement
The paper will discuss about the trend of iron ore, how currently its production, consumption and trade is taking place in the global market. The recent demand of iron ore is very less due to the reduction in steel manufacturing demand; moreover this demand is ...