[Import/Export Opportunities for iron ore, fertilizers and metallurgical coke from china to various

countries]

2014Karam Chand Thapar & Bros. (Coal Sales) Ltd.

Submitted By:Harsh Goel

MBA ENERGY TRADINGBATCH OF 2013-15

SYNOPSIS

Introduction : The three products assigned herein are considered as the major economy drivers of a country and when the country chosen is China - world’s major Producer/Consumer/Importer/Exporter in various products, it’s important to know the opportunities arising in its market which can be exploited for the profit of the organization.

Iron Ore – This is the key raw material for the production of Steel in the country. Steel Industry is the most booming industry in the whole world. The increasing demand of steel are mainly generated by the development projects that have been going on along the world and mostly in China, especially the infrastructural works and real estate projects that has been on the boom in such developing nations. Steel Industry was until recently, dominated by the United States of America but this scenario is changing with a rapid pace and China and India are the leaders among the countries that are on the developing spree.

The main demand creator for the Steel Industry which in turn uses iron ore as major raw material are:-Automobile Industry; Infrastructure Industry; Construction Industry; Oil and Gas Industry and Container Industry.

Metallurgical Coke - Metallurgical Coke (Met Coke) is mainly required for metallurgical and chemical industries and is mostly used as the primary fuel where high temperature and uniform heating is required.

The industrial consumers of Metallurgical Coke include:

- Integrated steel plants- Foundries/Industry producing Ferro Alloys- Pig Iron- Engineering Goods- Chemicals- Soda Ash and- Zinc units etc.

Fertilizers – It is any organic or inorganic material of natural or synthetic origin that is added to soil to supply one or more plant nutrients essential to the growth of plants. MMTC of India has remained one of the largest institutional buyers of fertilizers across the globe. Global market value is likely to rise to more than US$185 billion until 2019. The European fertilizer market is expected to grow to earn revenues of approx. €15.3 billion in 2018. So there is huge scope of this product to get developed in China and we can look forward for the Import and Export opportunities for the same in near future.

Problem Statement:The questions this research is seeking to answer are formulated as follows:

Import/export Opportunities for Iron Ore, Coke and Fertilizers from China to various countries.

1. List of Metallurgical Coke units and grades produced/Exported2. List of Urea and Fertilizers manufacturers3. Iron Ore importing companies

Objective & Scope:The main objective of this study is to find out how China’s market can be penetrated and its trade deficits in trade be used for the firm’s benefit, finding these opportunities in these three products markets and then further developing the scenario. Although these 3 products are not the core three (somewhat) realistic and accurate econometric indicators of China's economy but there unavailability/availability affects the growth prospect of the nation due to their end usage. As China is a developing country and most of the world economies depend on the products of/from China similarly these products play a major role in Infrastructural development that is right now the booming area of development in the world.

The basic research included the identification of ports which mainly included only the major ports of the Country from where it can Import or Export the said products (DRY BULK HANDLING PORTS) followed by the port inventory data and other data that could be extracted out of China, some data was blocked by the under taken country due to Internet censorship in the People's Republic of China

PurposeThe main purpose of this whole research is the identification of the market and finding the clients the organization can deal with to put its hands on the domestic market of China which is currently ruled by the domestic companies there and very few private players which is almost negligible to be noted. The further three questions helps us in noting down two important aspects of market

Who are our competitors Who would be our prospective domestic Suppliers/Consumers

The future prospect of the research would depend on the rung we occupy on the ladder prevailing in the Chinese market.

Research GapTo study the newly identified market of china, that has huge potential to generate profits for the firm along with the uprising demand in the world market. Also, the products and the related market are such that is exploitable and have great future prospects in the near future not only to India but to other countries as well.

Though there are several study on the identification of opportunities for various products for China there have never been a product based report or emphasis which could be undertaken and used for formal implementation. Every data is in unconsolidated form and no particular discussion is made about the Iron Ore, Fertilizers and Metallurgical coke in particular.

Research MethodologyIn this particular research, I am considering secondary data such as policies formulated by government, World Economic forum, and Government publication on Import/Export from and to China, Multiple News publications, Database provider (Knoema) and many other news publications giving an insight to for the data.

Flowchart of Research Methodology1. Introduction of the Chinese market according to the defined problem 2. Secondary data collection through various websites, News links, Papers and online

statistical data available3. Filtering of the data.4. Analysis of the data.5. Interpretation of the data.6. Conclusion

PROPOSED REPORT FORMAT

The Report format is given below with the expected list of chapters:

1. Cover page2. Introductory pages

a. Acknowledgementb. Abstractc. Table of contentsd. List of tablese. List of figuresf. List of variables

3. Texta. Chapters (With Main and sub sections)

i. Introduction Chapter 1: Introduction

ii. Literature Review Chapter 2: Study Area (China)Chapter 3: Overview of the Market of ChinaChapter 4: Overview of the Trading in Iron Ore, Fertilizers and Metallurgical Coke in the study area

iii. Objectives and Hypothesis Chapter 5: Objectives & its relevance in the study area

iv. Research Methodology Chapter 6: Status of Import and Export of Iron Ore from ChinaChapter 7: Status of Import and Export of Iron Ore to ChinaChapter 8: Status of Import and Export of Fertilizers from ChinaChapter 9: Status of Import and Export of Fertilizers to ChinaChapter 10: Status of Import and Export of Metallurgical Coke from ChinaChapter 11: Status of Import and Export of Metallurgical Coke to ChinaChapter 12: Total Import & Export from and to China

v. Data Analysis Chapter 13: Global Trading Partners of China (in Iron ore, Metallurgical Coke and Fertilizers in the study area)

vi. Conclusions Chapter 14: Findings: Suggestions & Opportunities KCT can take advantage of. Chapter 15: Measures & Strategies

4. Bibliography5. Appendices

Literature ReviewSERIAL NO. YEAR AUTHORS MAJOR FINDINGS1.2.3.4.5.