International Trading

Thermal Coal

India has emerged as a large and rapidly growing market for imported steam coal, which has mainly been sourced from Indonesia and South Africa. Imports into India are projected to grow at about 20-25% CAGR over the next few years, driven by strong growth in the power sector and limited increase in domestic coal products. VISA Resources India Ltd. is among the top five suppliers of steam coal to the private sector in India.

Coking Coal

India’s imports of coking have seen an average CAGR of about 8% over the last 15 years. Going forward growth of imports into India is likely to be around 10% p.a. over the next 5 years, driven by booming Indian coke production to support rapid growth in steel production and also due to the constrained imported coke availability. Australia remains the dominant source of imported coking coal for India.

LAM Coke

India’s coke imports have grown significantly over the last 5 years, driven by the expanding iron and steel production. China has been the main coke supplier into India. Increase in export tax from 25% to 40% in 2008-09 by the Chinese government has made coke imports from China unattractive and the market is supply constrained.

Minerals and Metals

Iron Ore

China has further consolidated its position as the largest importer of iron ore in the world – it imported 628 million MT in 2009, 42 per cent more than 2008. Australia, Brazil and India continue to be the largest suppliers to China, accounting for 42%, 23% and 17% respectively in 2008. China’s imports of iron ore are likely to witness double digit growth in 2009 as well.

Chrome & Manganese Ores

India’s imports of both chrome ore and manganese ore saw tremendous growth, buoyed by increased ferro alloy production. China continues to be the dominant market for chrome ore and saw its imports increase to 6.8 million MT in 2009. As India’s market share of Chinese imports of chrome ore continued to decline, VISA has expanded its sourcing base to other countries.

Ferro Alloys

China’s Stainless Steel production stabilized at around 7 million MT in 2009. South Africa, which has a large share of the world’s chrome ore reserves accounts for 45-50% of the global supply of ferro chrome. China’s stainless steel industry is pegged to resume its strong growth which will lead to increasing ferro chrome imports.

Iron & Steel

Global pig iron trade (excluding the GFC period) is about 12 million MT, of which the Asian market, where VISA is focused, contributed to about 3 million MT. Steel trade in the Asian region is also witnessing strong growth, for which VISA has positioned itself for participation, through its offices in the region.

Bauxite, Alumina & Aluminium

China’s aluminium production has been growing at a CAGR of about 17% over the last 5 years, as compared to 0.6% for the rest of the world. This has led to a ferocious appetite for related raw materials – alumina and bauxite, which China continues to import in large quantities.