China’s preference for long-term contracts affecting Indian iron-ore miners

Indian overseas shipment of high-grade iron-ore fines and lumps is facing significant risks as Chinese steel mills are increasingly looking at long term supply agreements. According to three miner-exporters based in the eastern Indian province of Odisha, the largest iron-ore producer in the country, Chinese steel mills are increasingly seeking long-term supply agreements with global resource majors instead of relying on merchant purchase by traders.