As India becomes more urban, the biggest iron ore producer in the world, Vale SA, believes the country will insure a tight future market for the product. The company believes India will be a great asset in heating up the iron ore market in the medium term. "We expect the iron ore market to stay heated in the near future, given the lack of significant growth in supplies and high quality iron ore and rising demand in China"-Vale. China is the world's largest consumer in the world. India's urbanization rate is significantly smaller than China's, but the government is planning to boost infrastructure spending.
I think the iron ore company is a great idea since India's government is spending more on trying to boost urbanization up to the rate of China. This company has faith in India and believes it will keep Vale's business up in good standing. With China wanting to improve the quality of ore grades to reduce their energy usage, they need all the help they can get with iron ore. India heating up iron ore for Vale will both benefit them economically and China since they have such a high demand. This will also increase the company's supply.
http://www.steelguru.com/raw_material_news/India_to_boost_iron_ore_demand_on_urbanization_-_Vale/172415.html
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