Analysis of the iron ore market in India
The relevance of research
According to AC Expert, India is the leader in terms of total iron ore reserves in the world according to confirmed data - 43 billion tons, which is 16,9% of the world's reserves, the iron content is 36%. One of the richest iron ore provinces in the world is located in India - the Kursk magnetic anomaly, with an area of 160 thousand km².
Purpose of the study
Analysis of the state of the iron ore market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the iron ore market
Content
Part 1. Overview of the Indian iron ore market
1.1. Main characteristics of the market
1.2. Dynamics of the iron ore market volume in 2015-2019 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Stage of the life cycle of the iron ore market
1.5. Competition from substitute products
Part 2. Competitive analysis in the iron ore market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of iron ore production
3.1. Volume and dynamics of domestic production of iron ore
3.2. Share of exports in iron ore production
3.3. Segmentation of iron ore production by region
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade deliveries of iron ore
4.1. Volume and dynamics of iron ore imports
4.2. Import structure
4.3. Volume and dynamics of iron ore exports
4.4. Export structure
Part 5. Iron ore consumption analysis
5.1. Dynamics of iron ore consumption
5.2. Analysis of the results of tenders for the purchase
Part 6. Price Analysis
6.1. Average producer prices by union territories
6.2. Producer price index by states of India
Part 7. Assessment of factors of investment attractiveness of the market
Part 8. Iron ore market forecast up to 2024
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian iron ore market
1.1. Main characteristics of the market
Consider the characteristics and features of the iron ore market.
The iron ore market in this study refers to the totality of enterprises engaged in …
According to ..., in 2019. … billion tons of iron ore were produced in the world. In the world rankings, India is at…
According to …, India is … in terms of total reserves … - … billion tons, which is …% of the global reserves, iron content is …%. According to information …
One of the richest iron ore provinces in the world is located in … - …, with an area of … thousand km². …
One of the promising basins of iron ore deposits is …
There are also several ... In total, there are ... billion tons of iron ore reserves there. …
More than ... enterprises in India are engaged in the extraction, enrichment and agglomeration of iron ores. They conduct their activities according to OKVED2:
...
The Indian iron ore and iron ore market is characterized by the fact that it is dominated by … products. In 2019 the share of imports of non-agglomerated iron ore raw materials (IORM) amounted to …%, it is … by … p.p., due to the increase in …
Diagram 1. The ratio of imported and domestic products,%
The main trends in the iron ore market include:
- keeping the trend...
- The Indian iron ore market is characterized by…
- dependence of the iron ore market on …
...
1.2. Dynamics of the iron ore market volume in 2015-2019 Potential market capacity
Consider the dynamics of the volume of the iron ore market.
The volume of the iron ore market in India in 2015 amounted to … million tons, in 2016. … million tons, market growth rate (…%).
In 2017 market size in physical terms … million tons (…%), in 2018 – … million tons (…%), growth of the Indian market in 2017-2018. was associated with...
The volume of the iron ore market in India in 2019 amounted to … million tons, the market volume was …% compared to 2018. To the greatest extent … was influenced by …
The volume of the iron ore concentrate market in India during the analyzed period ...
...
Revenue (net) from the sale of iron ore and iron ore raw materials (IRR) in 2015 amounted to … billion Rs., in 2016. – … billion Rs., an increase of …% against …
In 2017, revenue (net) from the sale of iron ore and iron ore …% compared to 2016 and was equal to … billion Rs., …
In 2018, revenue (net) … % and amounted to … billion Rs. in connection with…
Diagram 4. Revenue (net) from the sale of iron ore and iron ore, 2015 - 2019, billion Rs.
In 2019 proceeds (net) from the sale of iron ore and iron ore increased by …% and amounted to … billion Rs. ... associated primarily with ...
According to GidMarket analysts based on the data of …, the leading positions in terms of revenue (net) from the sale of iron ore and iron ore in 2019. occupies … federal district (…%).
In second place is … the federal district (…%) and in third place …
This distribution is due to the fact that iron ore mining enterprises are mainly concentrated in …
Potential capacity of India's iron ore market
The market potential of the iron ore market mainly depends on …
The potential of the iron ore market in India is estimated by GidMarket specialists to be ~+…% of the existing market volume, or ~… mt.
For the most part, the achievement of the market potential and its qualitative development is hindered ...
1.3. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, demand.
Economic forces
Dynamics of India's Gross Domestic Product
The dynamics of GDP is a determining factor in the development of the country's economy, it forms the main trends in consumer effective demand and economic activity.
Based on the data ..., the index of physical volume of GDP in 2019. amounted to …%.
From 2012 to 2014 GDP growth has been positive since the 2014 crisis. GDP growth rate in 2015 became …
In the opinion of … will be in the negative zone by the end of 2020, the decline of the Indian economy against the backdrop of the pandemic is projected at the level of …%-…%. The largest contribution will be made by...
According to the forecast … the decline in India's GDP will be – …% in 2020. In 2021 …
… updated the forecast for the development of the Indian economy, in their opinion, the decline in GDP under the base scenario will be -…%, which ... In 2021. moderate growth at the level of …% is forecasted. In 2022-2023 economic dynamics …%.
...
The Development Center ... made a GDP forecast for 2020-2021, in 2020. – decrease to …% with the prospect of growth in 2021. ~…%
...
Political and legal factors
...
Technological factors
...
Table 1. STEP analysis of factors affecting the iron ore market
Macro-environmental factors have … influence on the iron ore market, however, the decisive influence is exerted by ...
Such economic factors … have a negative impact on the iron ore market.
Political factors...
Technological factors…
1.4. Stage of the life cycle of the iron ore market
Consider a model of the life cycle of the iron ore market. Strategic management uses a market life cycle model that…
The iron ore market life cycle model presented in the diagram shows the development of…
There are four stages in the market life cycle:
...
The iron ore market is at the stage ... At this stage, the market is ...
In the … stage, enterprises focus on …
1.5. Competition from substitute products
Let's analyze the availability of substitute goods for iron ore.
Substitute products are products that perform...
Part 2. Competitive analysis in the iron ore market
2.1. Major players in the market
The largest TOP-5 companies in the iron ore market include the following enterprises:
- JSC “…”;
...
2.2. Market shares of the largest competitors
When conducting a competitive analysis in the iron ore market, the criterion of the first degree in determining the market share of competitors was ...
Diagram 11. Revenue shares of the largest competitors in the iron ore market in 2019, %
According to GidMarket, the leader of the iron ore market in India in 2019. is …, its members JSC “…” (…%) and JSC “…” (…%) together occupy …% of the market.
On the third place …
TOP-5 companies occupy …% of the iron ore market.
2.3. Profiles of major players
...
Part 3. Analysis of iron ore production
3.1. Volume and dynamics of domestic production of iron ore
...
3.2. Share of exports in iron ore production
The share of exports in the production of iron concentrate in India ... In 2015. the share of exports of iron ore concentrate was …%, it was … for four years and in 2018. its level was …%.
Diagram 15. The share of exports in production for 2015–2019, %
In 2019 share of exports … by … p.p. to …% due to … exports … to … by …%, to … - +…%, Slovakia +…%, …
3.3. Segmentation of iron ore production by region
3.3.1. Production by Union Territories
Consider the production of crude iron ore in India by Union Territories.
According to Rosstat in 2015. In India, … million tons of crude iron ore were produced. In 2016 production volumes were …% to … million tons. Production volumes were reduced in … and … federal districts, but …
Table 5. Dynamics of crude iron ore production in India by union territories, million tons
In 2019 crude iron ore production in India …%. Production volumes decreased in … (-…%) and … Union Territories (-…%), which was offset by an increase in production volumes in … (+…%) and … (+…%) federal districts.
...
3.3.2. Production by states of India
Consider the production of iron ore by the states of India.
In 2019 The largest share of iron ore in India is produced in … region - …%.
The second place is occupied by … oblast with a share of …%. On the third - ... region (...%), followed by ...
Part 4. Analysis of foreign trade deliveries of iron ore
4.1. Volume and dynamics of iron ore imports
Import of iron ore and concentrates during the analyzed period 2015-2019. … by …%, if in 2015 it amounted to … million tons, then in 2019. – … million tons.
The volume of imports of iron ore and concentrates to India in 2016. …% and was equal to … million tons.
...
In 2018 the volume of imports decreased by …% and was equal to … million tons due to the decrease in exports of …
In 2019 the volume of imports of iron ore and concentrates from India amounted to … million tons, the growth rate was …%.
By …% increase in imports of iron ore and concentrates in 2019. was provided with supplies from ...
...
In 2019 the volume of imports of iron ore and concentrates …% and reached … – … mln USD, the increase in imports is due to an increase in the purchase of raw materials from … mainly by metallurgical plants …
4.2. Import structure
In the structure of imports of iron ore and concentrates in 2019. the largest share is occupied by … – …%. The second place belongs to … – …%.
4.3. Volume and dynamics of iron ore exports
...
Let us calculate the balance of India's foreign trade in iron ore and iron concentrate.
The balance of India's foreign trade in iron ore and concentrate has … value.
Diagram 21. Balance of exports and imports, 2015-2019, million dollars
In 2015 it was equal to … million dollars and by 2019. … to … mln USD due to growth of …
4.4. Export structure
Consider the structure of exports of iron ore and concentrates in 2019.
In the structure of India's exports of iron ore and concentrates, export deliveries to … prevail, their share in the physical volume is …%.
The second place is occupied by … with a share of …%, the third – by …
Part 5. Iron ore consumption analysis
5.1. Dynamics of iron ore consumption
Consider the volume of consumption of iron ore and iron ore in the period 2015-2019. in terms of money.
During the analyzed period, the volume of consumption of iron ore and iron ore increased ... If in 2015. consumption amounted to … billion Rs., then in 2019. it reached … billion Rs.
During 2015-2019 the increase in consumption of iron ore and iron ore was …%. The largest increase was observed in …g. - …%, he was connected to…
In 2019 the volume of consumption of iron ore and iron ore increased compared to 2018. by …% and amounted to … billion Rs.
Due to the coronavirus pandemic, the volume of iron ore consumption …
5.2. Analysis of the results of tenders for the purchase
We will analyze the results of tenders for the purchase of iron ore and iron ore.
According to GidMarket, based on an analysis of the results of tenders held in India for ..., in 2019. iron ore and iron ore were purchased for … million Rs.
Part 6. Price Analysis
6.1. Average producer prices by union territories
In the period 2015-2019. average producer prices for iron ore concentrate increased …, from …Rs./t in 2015 to … Rs./t in 2019
Average producer price for iron ore concentrate in 2019 increased by …% against the level of the previous year and amounted to … Rs./t.
An analysis of prices by union territories showed that the highest prices were in the … federal district, in 2019. the price amounted to … Rs./t, in relation to 2018. the price increased by …%.
The lowest price - …
At present, the Indian market has become …, in contrast to the period before 2014, when the price was …
6.2. Average consumer prices by states in India
Average consumer prices by states of India are presented in the table below.
Part 7. Assessment of factors of investment attractiveness of the market
The most significant negative factors
...
The most significant positive factors
...
Nevertheless… the factors of the investment climate of the Indian iron ore market dominate over… A comprehensive assessment of the investment attractiveness factors is… points –… the investment climate.
...
Part 8. Iron ore market forecast up to 2024
...
Part 9. Recommendations and conclusions
...
Diagrams
Diagram 1. The ratio of imported and domestic products,%
Diagram 2. Dynamics of the volume of the iron ore market, 2015–2019, million tons
Diagram 3. Dynamics of the volume of the iron ore concentrate market, 2015-2019, million tons
Diagram 4. Revenue (net) from the sale of iron ore and iron ore, 2015 - 2019, billion Rs.
Diagram 5. Structure of revenue (net) from the sale of iron ore and iron ore by union territories, 2019, %
Diagram 6. Dynamics of India's GDP, 2012-2019, % to the previous year
Chart 7. Monthly dynamics of the average monthly exchange rate of the US dollar against the rupee, 2014-2019, Rs. for 1 US dollar
Diagram 8. Dynamics of steel production in India, 2015-2019, million tons
Diagram 9. Dynamics of housing commissioning in India, 2015-2019, mln. m
Diagram 10. Life cycle of the iron ore market
Diagram 11. Revenue shares of the largest competitors in the iron ore market in 2019, %
Diagram 12. Dynamics of the total revenue of the largest producers (TOP-5) of iron ore in India, 2015-2019, billion Rs.
Diagram 13. Dynamics of crude iron ore production in India, 2015-2019, million tons
Diagram 14. Dynamics of iron ore concentrate production in India, 2015-2019, million tons
Diagram 15. The share of exports in production for 2015–2019, %
Diagram 16. Shares of iron ore production by states of India, 2019, %
Diagram 17. Volume and dynamics of iron ore imports in physical terms, 2015-2019, million tons
Diagram 18. Volume and dynamics of iron ore imports in monetary terms, 2015-2019, mln USD
Diagram 19. Dynamics of exports of iron ore and concentrates in physical terms, 2015-2019, million tons
Diagram 20. Dynamics of exports of iron ore and concentrates in monetary terms, 2015-2019, mln USD
Diagram 21. Balance of exports and imports, 2015-2019, million dollars
Chart 22. Structure of exports by countries in 2019, %
Diagram 23. Dynamics of consumption of iron ore and iron ore in monetary terms, 2015 - 2019
Diagram 24. Volume of tenders for iron ore and iron ore, 2019, million Rs.
Diagram 25. Forecast for the development of the iron ore market in 2020-2024 (one COVID-19 self-isolation)
Diagram 26. Forecast of iron ore market development in 2020-2024 (two COVID-19 self-isolations)
Tables
Table 1. STEP analysis of factors affecting the iron ore market
Table 2. Approximate chemical composition of production waste, %
Table 3. Main companies participating in the iron ore market in 2019
Table 4. Profiles of companies participating in the iron ore market in 2019
Table 5. Dynamics of crude iron ore production in India by union territories, million tons
Table 6. Dynamics of iron ore concentrate production in India by union territories, million tons
Table 7. Iron ore import structure by importing countries in 2019, %
Table 8. Average producer prices for iron ore concentrate across the Union Territories, Rs./t
Table 9. Average consumer prices for iron ore concentrate by states of India, Rs./t
Table 10. Assessment of factors of investment attractiveness of the iron ore market
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