In an interview with CNBC-TV18, PK Mukherjee, Managing Director of Sesa Goa, India's largest iron ore exporter, spoke about demand for the metal and how things may pan out for the company ahead.
Q: Some of the larger players have conducted and concluded iron ore price negotiations. What is your estimate of what 2010 will look like?
A: I do not have any specific news that negotiations have concluded. However, indications are there that 2010 looks to be brighter than 2009. All indications are on the iron ore market because all the pundits are projecting the annual benchmark price to go up anywhere between 10-30% now. In the last one month, Chinese spot market prices have continued to go up. Hence, 2010 will be very good year.
Q: Where are sport prices trading at right now? Is it a 30% upmove?
A: Spot prices are not 30% up. As of today, Indian FE grade price of 53 grade, on FOB basis, is it at USD 80-86 per tonne.
Q: Do you think you will maintain the kind of volume guidance that had panned out?
A: We will be delivering 25% volume growth. There are some hiccups coming in between for the logistics issues particularly from Karnataka and Orissa where there are lot of problems on the mining side. However, so far our mining has not been affected but logistics side the permits are not getting issued. All the government officials are on guard. Hence, they are taking very cautious approach. In the process, we are losing a lot of logistics capacity. Everything is going on well, except in October and November there were some extended monsoon effects.
Q: Do you think you will maintain the kind of volume guidance that had panned out?
A: We will be delivering 25% volume growth. There are some hiccups coming in between for the logistics issues particularly from Karnataka and Orissa where there are lot of problems on the mining side. However, so far our mining has not been affected but logistics side the permits are not getting issued. All the government officials are on guard. Hence, they are taking very cautious approach. In the process, we are losing a lot of logistics capacity. Everything is going on well, except in October and November there were some extended monsoon effects.
0 comments:
Post a Comment