PERTH, March 26 (Asia Pulse) – 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, an analyst says. Markets shuddered this week when BHP Billiton said Chinese demand for the steel making commodity was flattening.
Compounding the new sober outlook for iron ore were comments at a conference in Perth by a consultant for commodities market analysts CRU, Laura Brooks, who said Chinese steel use would begin to slow down after 2015.
Ms Brooks went on to say that India’s strong appetite for iron ore would not totally make up for lower Chinese iron ore consumption.
“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 per cent achieved in China,” she told delegates this week.
“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