Punjab and Haryana High Court

NRI Quota Fraud Must Come To An End: SC Bench

The Supreme Court on Tuesday said that the “NRI quota business” must stop and dismissed petitions challenging a Punjab and Haryana High Court order that had quashed a Punjab government notification amending conditions for Non-Resident Indian (NRI) quota admissions in the State’s medical colleges.

A bench of Chief Justice of India DY Chandrachud and Justices JB Pardiwala and Manoj Misra termed the amended conditions by the government as ‘fraud’.

“We must stop this NRI quota business now. This is complete fraud, we have to put an end to the fraud. This is what we are doing to our education system. Judges know what they are dealing with. The High Court order is absolutely right,” said the apex court.

The top court was hearing three petitions against Punjab and Haryana High Court order of September 11, whereby it had quashed the August 20 notification of the Punjab government, which had widened the definition of ‘NRI’ candidates to include relatives of NRIs.

The High Court had quashed the notification, amending conditions for NRI quota admissions for MBBS courses in the state’s medical colleges, on the ground that the broadening of the definition was ‘arguably unjustified’.

After hearing arguments in the case, the apex court said, “All three petitions dismissed. Let us put a lid on this. This fraud has come to an end. This NRI business is nothing but a fraud. This comes to an end now.” (ANI)

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Joe Biden At UN General Assembly

Joe Biden At UN General Assembly: Putin’s War Has Failed

US President Joe Biden in his final address before the UN General Assembly on Tuesday morning in New York City, capping a decades-long political career that has focused heavily on foreign policy, stressed the top national security priorities of US- Ukraine and its defence against the Russian invasion.

“The good news is Putin’s war has failed at his core aim,” Biden said. He then promised to continue to support Kyiv until it achieves a “durable peace”. The unyielding tension in West Asia dominated much of the UN conference.

Biden has said he believes a ceasefire and hostage negotiation agreement is close, but nearly one year after the deadly October 7 Hamas attack on Israel that incited the war, a deal remains elusive. Biden said the “world must not flinch” from the horrors of October 7, and innocent civilians in Gaza are “also going through hell.”

“Since October 7, we’ve also been determined to prevent a wider war that engulfs the entire region,” the president said. “Hezbollah, unprovoked, joined the October 7 attack launching rockets into Israel. Almost a year later, too many on each side of the Israeli-Lebanon border remain displaced. Full-scale war is not in anyone’s interest.”

Biden began by making a now-familiar joke about his age. “I’ve seen a remarkable sweep of history. I was first elected to office … in 1972. Now, I know I look like I’m only 40. I know that,” the president said, drawing laughs. Biden then talked about how he has seen the country change over his decades in Washington, and how enemies have become allies.

As he wrapped up his address, Joe Biden reflected on his decision not to seek a second term in office. “We must never forget who we’re here to represent,” Biden said. “We, the people. These are the first words of our Constitution, the very idea of America, and they inspired the opening words of our UN Charter. I’ve made the preservation of democracy the central cause of my presidency.”

US President said, “This summer, I faced a decision whether to seek a second term as president. It was a difficult decision. Being president has been the honor of my life. There’s so much more I want to get done. But as much as I love the job, I love my country more. I decided after 50 years of public service, it’s time for a new generation of leadership to take my nation forward. My fellow leaders, let us never forget, some things are more important than staying in power.”

Apart from the conflict in West Asia, Biden also called on countries to combine their forces against Russia’s ongoing war in Ukraine and the growing global concerns about China’s influence.

“I truly believe we’re at another inflection point in world history. The choices we make today will determine our future,” Biden said.

He also spoke about the Quad and praised his government for rebuilding the US alliance. Quad is a diplomatic partnership between four countries–Australia, India, Japan, and the United States.

He said, “To face the future, I was also determined to rebuild my country’s alliance and partnerships to a level not previously seen. We did, we did just that from traditional treaty alliances to new partnerships like the Quad, United States, Japan, Australia and India. I know many looked at the world today and see difficulties and react with despair. But, I do not, I won’t, as leaders we don’t have the luxury. I recognize the challenges from Ukraine to Gaza, Sudan and beyond.”

US President Biden hosted the fourth in-person and sixth overall Quad Leaders’ Summit in Delaware on September 21. Quad Leaders Summit saw the participation of Japan Prime Minister Fumio Kishida and Australian Prime Minister Anthony Albanese apart from Prime Minister Narendra Modi and President Biden. (ANI)

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Kareena Kapoor

Kareena Kapoor Congratulates Team ‘Laapataa Ladies’

Actor Kareena Kapoor has congratulated the team of ‘Laapataa Ladies’ for getting selected for Oscars 2025.

On Tuesday, Kareena dropped the poster of the film on her Instagram Story and wrote, “Great stories deserve great recognition. Congratulations @roadyness @aamirkhanproductions So happy for you guysss @pratibha_ranta @nitanshigoelofficial @shrivastavasparsh @ravikishann.”

Karisma Kapoor also congratulated the team on her Instagram Story. She wrote, “Kiran” with clap, heart and smiley emoji.

Kiran Rao’s ‘Laapataa Ladies’ has been selected as India’s entry for the Oscars 2025.

Directed by Kiran Rao and produced under the banners of Aamir Khan Productions, Kindling Pictures, and Jio Studios, ‘Laapataa Ladies’ was released in theatres on March 1, 2024.

It starred Nitanshi Goel, Pratibha Ranta, Sparsh Shrivastava, Ravi Kishan and Chhaya Kadam.

Kiran also expressed her gratitude for recognising her piece of hard work and giving her a chance to make her film reach a global audience.

“I am very happy. I was not expecting an Oscar entry as many good films have been made this year. Now we will have a chance to show this film to a much larger audience. I would like to thank the audience for giving so much love to this film. I think there is something for everyone in this film,” she shared.

While she looks forward to taking the journey ahead with great enthusiasm, she understands that the road to the Oscars will be challenging.”

The film was made on the issues, expectations and aspirations of women. When such a film becomes the country’s official entry to the Oscars then it is very encouraging. I think with this it feels like we are going in the direction of finding solutions to many problems faced by women. People have appreciated the introduction of new faces and talents in this film. It took us 4-5 years to make this film, I want to thank the whole team of the film… Oscars ka raasta lamba aur kathin hota hai par hum apni taraf se puri koshish karenge (The journey to Oscars is not going to be easy but we will give it all),” Kiran emphasised. (ANI)

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Thunderbolts Marvel

Marvel Unveils Action-Packed Trailer For ‘Thunderbolts’

Marvel Studios has released the highly anticipated trailer for ‘Thunderbolts’, set to hit theatres on May 2, 2025.

Directed by Jake Schreier, the film features a star-studded cast, including Florence Pugh, Geraldine Viswanathan, Olga Kurylenko, Wyatt Russell, Lewis Pullman, David Harbour, Julia Louis-Dreyfus, and Hannah John-Kamen.

The movie focuses on a team of morally ambiguous characters commissioned by the government to carry out covert missions, as per The Hollywood Reporter.

The trailer opens with Florence Pugh reprising her role as Yelena Belova, who grapples with feelings of emptiness despite her dangerous profession as an assassin.

During a touching reunion with her father, Alexei, played by David Harbour, Yelena reflects on her unfulfilled life.

As the action unfolds, Yelena quickly finds herself amidst a group of some of Marvel’s most notorious antiheroes.

“Everyone here has done bad things… So, someone wants us gone,” she states ominously to her companions, including John Walker (Wyatt Russell), Ghost (Hannah John-Kamen), and Taskmaster (Olga Kurylenko).

The tension builds as they realize they are targets of an unseen villain.

“This could get messy,” Yelena warns, encapsulating the film’s tagline, “Careful Who You Assemble.”

The trailer also features Lewis Pullman’s Bob and Julia Louis-Dreyfus’s Val, who introduces the team of unlikely allies facing perilous challenges.

‘Thunderbolts’ experienced delays due to the writers’ and actors’ strikes last year, resulting in a revised release date.

Production saw changes as Geraldine Viswanathan stepped in for Ayo Edebiri and Lewis Pullman took over from Steven Yeun due to scheduling conflicts.

Kevin Feige, president of Marvel Studios, leads the production team, with Louis D’Esposito, Brian Chapek, Jason Tamez, and Scarlett Johansson serving as executive producers.

With its blend of action, dark humour, and complex characters, ‘Thunderbolts’ promises to be an exciting addition to the Marvel Cinematic Universe. (ANI)

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Miss India Universe Urvashi Rautela

Urvashi Visits Char Dham, Urges Pilgrims To Experience It

Bollywood actress and former Miss India Universe, Urvashi Rautela, made a heartfelt visit to the revered Shri Badrinath Dham and Shri Kedarnath Dham on Tuesday, accompanied by her family.

Overwhelmed by the spiritual ambience of these sacred sites, Rautela urged fellow devotees to embark on the Char Dham Yatra.

The ‘Sanam Re’ actress, originally from Kotdwar in Uttarakhand and now based in Mumbai began her pilgrimage early Tuesday morning, Rautela first visited Shri Kedarnath Dham, where she offered prayers and performed Jalabhishek for Lord Kedarnath.

Her mother, Meera Rautela, and brother, Yashraj Rautela, accompanied her during this sacred ritual.

Following the prayers, Vijay Prasad Thapliyal, CEO of the Badrinath-Kedarnath Temple Committee (BKTC), presented the family with ‘prasad’.

The occasion was marked by the presence of several officials and priests, including priest Shivshankar Ling and senior administrative officer Yaduveer Pushpawan.

After her visit to Kedarnath, Rautela continued her pilgrimage to Shri Badrinath Dham in the afternoon, where she received prasad of Lord Badrivishal, presented by in-charge officer Vipin Tiwari.

Dr Harish Gaur, the media in-charge of BKTC, shared insights about Rautela’s visit, highlighting her enthusiasm for promoting the Char Dham Yatra.

Meanwhile, Chief Minister Pushkar Singh Dhami convened a crucial meeting on August 17 at the Secretariat, bringing together priests, officials, hotel associations, tour operators, transport representatives, and business boards linked to the Char Dham Yatra.

The discussions focused on ensuring the safe and smooth conduct of the pilgrimage for devotees, as well as the livelihood of local residents.

During the meeting, Dhami highlighted the significance of the Char Dham Yatra, stating, “Lakhs of devotees from the country and abroad come to Uttarakhand for darshan. The safe conduct of this journey is the collective responsibility of all of us.”

He acknowledged the increasing number of pilgrims and emphasized the government’s commitment to enhancing infrastructure facilities to accommodate this growth.

Stakeholders presented various demands aimed at facilitating a successful yatra.

The Chief Minister assured that the online registration for the Char Dham Yatra would continue from the first week of September until the doors close, allowing for on-the-spot registration for pilgrims who may not register online.

He also announced that there would be no limitations on the number of registrations, with offline arrangements available at major stops, including Haridwar, Rishikesh, Gangotri, Yamunotri, Kedarnath, and Badrinath.

In response to concerns about the yatra’s logistics, he promised a review of barricading and checking procedures to simplify the experience for devotees.

Addressing the need for clarity regarding the mandatory Green Card/Trip Card for vehicles from other states, Dhami instructed the Transport Department to find a resolution.

He emphasized that preparations for the next Char Dham Yatra would commence promptly after the conclusion of the current one.

District officers will be tasked with holding meetings with local stakeholders to devise a comprehensive strategy for future yatra preparations.

Dhami also mentioned the acceleration of the ropeway project at Yamunotri Dham and the widening of roads along the Char Dham route, with clearances already secured by the monitoring committee.

In a move to enhance transportation options, a special train named Ganga-Yamuna Express will be introduced, following a circuit of key pilgrimage sites, similar to the Kartikeya Express in Madurai. Additionally, plans are underway to initiate heli services in Yamunotri.

The Chief Minister expressed his commitment to making informed decisions regarding the yatra’s operation, emphasizing collaboration with all stakeholders.

He noted, “For the first time since the formation of the state, a Chief Minister has held such a detailed meeting on various topics related to the Char Dham.”

As the meeting concluded, stakeholders voiced their appreciation for the Chief Minister’s engagement and reiterated their commitment to ensuring the yatra is conducted safely and efficiently. (ANI)

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Paris Fashion Week Alia Aishwarya

Alia Poses With Aish, Kendall In Stunning Pic From Paris Fashion Week

Alia Bhatt, who captivated everyone with her stylish appearance at Paris Fashion Week debut, shared a series of pictures featuring Aishwarya Rai, Kendall Jenner, Simone Ashley and others from the gala night.

Taking to Instagram on Tuesday, Alia treated fans with pictures from her first time on the Paris Fashion Week ramp.

Representing beauty brand L’Oreal Paris on Monday, Alia walked the runway in style.

In one of the pictures, Alia posed with Aishwarya Rai, Kendall Jenner, Simone Ashley and Camila Cabello among others on the runway.

Clad in a metallic silver bustier that she paired with a black off-shoulder jumpsuit, Alia slayed the look.

For the glam, she added a pink touch to her lips. Her wet hair look made her appearance even more eye-captivating.

Sharing the photos, she wrote, “a night to uplift, embrace & inspire; because we’re all #WorthIt.”

Aishwarya on the other hand walked the runway with utmost confidence and grace.

She wore a stylish balloon hem red dress and let her hair down and added a pop of colour to her look with a bold red lip shade.

Her walk became more special when she greeted the French audience with ‘namaste’ (a gesture, deeply ingrained in the rich tapestry of Indian culture).

Recently, Alia was named the Global Brand Ambassador for Loreal Paris.

Meanwhile, on the acting front, Alia is gearing up for the release of ‘Jigra’, which also stars Vedang Raina.

Directed by Vasan Bala, ‘Jigra’ will be out in theatres on October 11.

In February 2024, Alia shared pictures from the sets after wrapping up the film, which is made under Dharma Productions banner.

Sharing the post, she earlier mentioned, “jigra oh… abki teri baari ho @vedangraina & that’s a film wrap on #JIGRA @vasanbala @swapsagram. See you soon.”

In the coming months, Alia will also be seen with Sharvari in the spy drama ‘Alpha’. (ANI)

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Jharkhand Assembly elections Biswa Sarma

BJP In Talks With AJSU, JDU For J’khand Alliance : Biswa Sarma

Assam Chief Minister and Jharkhand co-election in-charge, Himanta Biswa Sarma on Tuesday said that the BJP was finalising its electoral alliance with parties like the AJSU and the Janata Dal United in the state.

“The date of Jharkhand Assembly elections will be decided by the Election Commission of India but BJP is ready for the elections. We are holding talks with the All Jharkhand Students Union (AJSU) and Janata Dal (United)…The public has made up their mind for change,” he said.

Sarma feels that the electoral alliance wit he JDU will be closed soon, the two parties are also in alliance in Bihar.

“Janata Dal (U) will also be with us. We have almost talked to Janata Dal (U). I feel that we should do it in the first week. in one place, we should be ready in that too. We don’t have much of a view of that.” he said.

Earlier on Monday, Union Minister and BJP National President JP Nadda addressed the Parivartan Sabha in Khunti emphasising that the ‘parivartan yatra’ aims to uphold the rights of tribal communities, safeguard women’s rights, protect them against land grabbing, and take strong action against those who have deceived them.

Addressing a public rally JP Nadda said, “This Parivartan Yatra is a resolve to safeguard the rights of our innocent tribal brothers, a resolve to protect our mothers and daughters. This Parivartan Yatra is a journey to protect those who are trying to usurp the lands of the tribal brothers and to assure you that action will be taken against those who have cheated them.”

Meanwhile, the delegation of the Election Commission of India, led by Chief Election Commissioner Rajiv Kumar conducted a meeting today with senior police officials of Jharkhand to review the poll preparedness for assembly elections in the state, expected to be held later this year.

The state is likely to witness elections to the 81-member Jharkhand legislative assembly on or before December 2024 as the tenure of the current government is set to end in January 2025. However, the Election Commission is yet to announce the election schedule.

In the 2020 Assembly elections, JMM won 30 seats, BJP secured 25, and Congress won 16 seats. (ANI)

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Tirupati Laddu Prasadam Andhra Dy CM Prakash Raj

Andhra Dy CM, Prakash Raj Engage In War Of Words Over Tirupati Prasadam Row

Andhra Pradesh Deputy Chief Minister Pawan Kalyan and film actor Prakash Raj have engaged in a war of words over the alleged use of animal fat in the preparation of the Tirupati Laddu Prasadam.

Kalyan arrived at Kanaka Durga Temple, in Vijayawada on Tuesday morning to perform a purification ritual, as part of his 11-day ‘Prayaschitta Diksha’ where he slammed film actor Prakash Raj for questioning his secularism credentials.

“I am addressing the sanctity of Hinduism and issues like food adulteration. Why should I not speak about these matters? I respect you Prakash Raj, and when it comes to secularism, it must be mutual. I do not understand why you are criticizing me. Should I not speak out against attacks on Sanatana Dharma? Prakash should learn a lesson. The film industry and others should not make light of this issue; I am very serious about Sanatana Dharma. Many critics have targeted Ayyappa and Goddess Saraswati. Sanatana Dharma is of utmost importance. Every Hindu should take responsibility in this regard. If similar issues arose in other religions, there would be widespread agitation,” Kalyan said.

Replying to this, actor Prakash Raj said that he is abroad for a shoot right now but will come back to reply Kalyan’s questions.

“Dear Pawan Kalyan garu, i saw your press meet. What I have said and what you have misinterpreted is surprising. I am shooting abroad; I will come back to reply your questions. Meanwhile, I would appreciate if you could go through my tweet earlier and understand,” he said on X.

On September 20, Andhra Pradesh Deputy CM posted on X about the Tirupati Prasadam and called to establish a ‘Sanatana Dharma Rakshana Board’ at national level.

“We are all deeply disturbed with the findings of animal fat (fish oil, pork fat and beef fat) mixed in Tirupathi Balaji Prasad. Many questions were to be answered by the TTD board constituted by YCP government then. Our Govt is committed to take stringent action possible. But this throws light on many issues surrounding desecration of temples, its land issues and other dharmic practices,” Pawan Kalyan said on X.

“Many be the time has come to constitute a ‘Sanatana Dharma Rakshana Board’ at a National level to look into all the issues related to temples in entire Bharath. A debate has to happen at a National level by all the policy makers, religious heads, judiciary, citizens, media and all others in their respective domains. I think we all should come together to put an end to desecration of ‘Sanathana Dharma’ in any form,” he added.

Actor Prakash Raj, in reply to this, said that the country has enough “Communal tension” and the Deputy CM is spreading apprehensions and blowing up the issue nationally.

“Dear Pawan Kalyan, it has happened in a state where you are a DCM. Please Investigate and find out the culprits and take stringent action. Why are you spreading apprehensions and blowing up the issue Nationally? We have enough Communal tensions in the Country. (Thanks to your friends in the Center)” he said. (ANI)

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Chinese Quest For High Quality Iron Ore

Chinese Quest For High Quality Iron Ore

(In the previous column, we discussed how China’s Growing Appetite for Steel has impacted its carbon footprint. In this concluding part, we shall analyse the mounting pressure on steelmakers to become carbon neutral and where the solution lies)

The ground reality for the steelmaking ingredient is that China, which last year had a share of 53 % of global steel production and also features in about 75% of all seaborne iron ore trade has decided to restrict annual metal output at around 1bn tonnes for two considerations. First, China’s crude steel demand is unlikely to see any major improvement from 911m tonnes in 2023 in view of tepid performance of the economy. Second, climate change being a major concern for Beijing with the campaign for clean air being assiduously led by President Xi Jinping himself, a principal target for housecleaning is naturally the big polluter steel industry. Incidentally, steel mills account for nearly 16% of China’s total emissions. This is double the global emission average for steelmaking.

As Beijing is targeting peak carbon emissions by 2030 and carbon net zero by 2060, mills have come to realise that the journey to green steel will be facilitated by the use of better grades of iron ore. Experts describe ore with high iron content whose use limits energy intensive sintering is the low hanging fruit for the industry told to reduce emissions at an accelerated pace. Blast furnace (BF) efficiency improves when ore bearing high iron and low impurities such as alumina and silica is used. At the same time, steelmakers armed with BF and basic oxygen furnace (BOF) could be a lot less environment fouling in its operation by switching to higher grade agglomerates such as pellets and direct reduced iron (DRI), using iron ore fines and low grades of ore. This will explain why Chinese steelmakers have stepped up buying of better grades of iron ore in recent years.

Supply of very high iron contained ore to Chinese mills in particular and also to others will get a boost once operationalisation of mines at Simandou in West Africa’s Guinea begins by December 2025. Simandou, which holds by far the largest deposit of iron ore of a quality not easily available, should have been in production years ago but for interminable delays caused by political uncertainty, ownership disputes and widespread corruption That the mining giant Rio Tinto secured its first exploration licence in 1997 goes as proof of uncertainty that surrounded project implementation and funding issues all these agonising years. Simandou holds over 2 billion tonnes of ore with iron content 65% mostly, a rare global phenomenon. In fact, once ore starts flowing in volumes from this Guinean deposit, it will have the potential to challenge the dominance of Pilbara region of Western Australia, the world’s largest producer and exporter of the ingredient.

Even while Western Australia has the biggest share of global crude iron ore reserves at 24%, the average iron content there is 62% in line with the world average. High grades of ore are preferred by mills for these contain fewer impurities and for the miners these have a significant impact on operating margins, helped by the premium such ore commands in the market. The interesting thing about Simandou is the involvement of a number of Chinese companies through Chalco Iron Ore Holding (Baowu group owns 20% of it) and Singapore based Winning International.

Chinese investors have been drawn to Simandou for the size and quality of ore found here. There is also the consideration of China diversifying sources of iron ore imports, particularly Australia with which Beijing had quite a few rather serious run-ins. By far the major part of Australian iron production in 2023 of 960m tonnes was shipped to China, which yielded a record 85% of $136bn revenue for Australia from iron ore exports.

No doubt the major part of Simandou production will find its way to China whose steel production is more than that of the rest of the world. Canberra has every reason to be concerned about iron ore of very high quality starting to flow from Simandou hopefully in a year and a half posing some threat to Pilbara ore exports. This is despite the freight advantage that shippers from Australia will always have over despatches from competition to emerge from West Africa. Guinea is roughly 7,700 nautical miles or 14,260 km farther from Australia and iron is a bulky commodity making it expensive to transport. But as steel mills in China in particular and elsewhere too will have the compulsion to use the relatively new capital equipment for a good number of years till their renewal becomes due and still will be required to cut carbon intensity they likely will be ready to pay extra freight for Simandou ore.

Simandou reserves have been assigned to separate consortia for development. Blocks three and four are with Rio Tinto and China’s CIOH owned by Aluminium Corporation of China (75%), Baowu Steel (20%), China Harbour Engineering (2.5%) and China Railway Construction Corp (2.5%) while blocks one and two are to be commissioned by Winning Consortium Simandou (WCS) of which the partners are Singapore headquartered Winning International Group, Weiqiao Aluminium and United Mining Suppliers. The total investment across the four blocks will be around $25bn, making it the single largest investment in African continent.

A Rio Tinto official said that the Simandou project at its full capacity use could raise the country’s GDP by 50%. At over 2bn tonnes, Simandou is among the largest single location iron ore reserves in the world. Citing the example of Australia and a few other ore bearing countries where new deposits keep on being discovered in the course of intensive exploration and mining, the director general of Federation of Indian Mineral Industries (FIMI) RK Sharma says, “Same will be the case with Simandou.” However, what needs to be factored in is the Guinean proneness to political instability, policy uncertainty and rampant corruption.

Notwithstanding its potential, it will be some years before Guinea emerges as a significant supplier of iron ore. In the meantime, according to a study, global ore production estimated at 2.4bn tonnes in 2023 is likely to register a CAGR of 1.9% till 2030 when output should be 3.004bn tonnes. Expectedly, the world’s two industry leaders Australia and Brazil will be contributing the maximum to the growth by way of commissioning new mines and capacity expansion at operating sites. This, however, has to be seen against the warning by the Reserve Bank of Australia that Chinese demand for iron ore may have peaked, setting the scene for a potential multi-decade hit to government revenue and profits of mining groups.

Hasn’t Beijing wanted the steel industry to restrict production around current level? Moreover, the industry is encouraged to realise the country’s potential to make steel through the low carbon route of electric arc furnaces (EAFs) where the feedstock is steel scrap and not iron ore. Global Energy Monitor informs that by January 2024, China had installed 151m tonnes of EAF exceeding the 2025 target capacity of 143m tonnes needed to have a 15% share of total crude steel production. International Energy Agency’s net zero by 2050 target demands in that year the global steel industry will be required to use EAF technology for 43% of total primary steelmaking with hydrogen-based DRI. All these factors combined will make the demand outlook for ore somewhat complicated. What, however, looks certain is that Chinese demand unlikely to show any significant changes, supply will remain the principal price decider for iron ore. Furthermore, in view of the mounting pressure on steelmakers to become carbon neutral, miners will be obliged to focus on improving ore quality in alignment with changing demand profile.

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(Concluded)

China’s Growing Appetite For Steel

China’s Growing Appetite For Steel

As the pressure of decarbonisation mounts and the demand for clean (better to say green) steel grows across the world, the compulsion of steelmakers to procure iron ore with very high fe (iron) content and low impurities such as alumina and silica will continue to grow. But it is becoming increasingly challenging to get ore with 64 per cent and more iron in it in big volumes. Iron ore is the principal feedstock of steel produced through the blast furnace-basic oxygen furnace (BF-BOF) route.

Even while serious attempts are made to improve circularity in the steel industry by enhancing electric arc furnace (EAF) capacity in the West, China and India, McKinsey says in a report that the share of “crude steel from the BF-BOF route is expected to drop from around 70 per cent to around 60 per cent between 2023 and 2035.” Circularity happens through the use steel scrap in EAF. In India, Tata Steel MD & CEO TV Narendran is championing the cause of circularity.

At the same time, says the McKinsey report presented at the recent Delhi conclave of Indian Steel Association, the global steel use during this period is estimated to rise to 1.95 to 2 billion tonnes from 1.764 billion tonnes. This being the reality, the article will discuss how desperate China, which had a 54 per cent share of global steel production of approximately 1.888bn tonnes in 2023, has become to acquire iron ore deposits and open new mines in offshore lands in Africa and elsewhere, defying all challenges.

China has quite a large iron ore resource. But the ore quality is poor and becoming increasingly worse as raisings show. Along with resources acquisitions, China is investing heavily in building roads, rail tracks and ports in overseas virgin mining centres to evacuate ores efficiently and cost effectively.

China’s quest for minerals abroad is not restricted to iron ore and bauxite (the latter for making aluminium in which China is by far the world’s largest producer). Driven by an unquenched thirst, the country has been seen splurging money in buying virtually all kinds of natural resources, including rare minerals found anywhere in the world. Though not yet admitted, Beijing is using belt and road initiative to entice many struggling economies but with rich mineral resources to let China open mines there. Africa and South America are the two continents where China is found particularly aggressive in picking up mineral assets.

In a politically unstable country like Guinea with a high degree of corruption and widespread militancy, China is almost in final stages of opening a very large iron ore mine where the deposit quality is among the best in the world. That Chinese companies like their counterparts in the West will often resort to unfair ways, including bribing ministers and bureaucrats are an open secret.

China’s progress in buying mineral assets, particularly critical minerals, including rare earth elements in Africa is viewed with concern by the US and EU. When the West and also Japan are seeking to pare their dependence on supplies from China, Benchmark Mineral Intelligence has estimated that more than 90 per cent of Africa’s forecasted lithium supply in 2024 will come from projects at least partly owned by Chinese companies. In cobalt and copper, China also owns substantial stakes in mines in the Democratic Republic of Congo. The concerned US and the EU not only got into the act of buying mineral assets in Africa late but unlike China they are found slow in concluding deals. In the meantime, iron ore features quite high among commodities dominating seaborne trade in terms of volume and also value.

China, which is by far the world’s largest importer of iron ore required to run the BF-BOF segment of its giant steelmaking industry presents analysts with the riddle surrounding continuing arrivals of the raw material at Chinese ports in high volumes in the face of steel production fall. The country’s imports of iron ore in this year’s first eight months up to August were up 5.2 per cent year-on-year to 814.95m tonnes. Analysts say the country will continue to import monthly around 100m tonnes, helped by global supply glut. But in the first seven months of 2024 (August figures are awaited), production of crude steel was down 2.2% to 613.7m tonnes.

No wonder then inventories of the steelmaking ingredient at Chinese ports are sitting at elevated levels vis a vis established seasonal norms. The riddle becomes even more tricker by high summer ore imports when mills routinely apply brake in capacity use in response to steel demand fall from construction and housebuilding sector.

Beijing based consultants SteelHome says in a report port stockpiles of ore have been rising steadily since reaching a seven-year low of 104.9m tonnes in the final week of October. Underlining the continuing strength in imports, monthly port stockpiles are showing an average gain of 6.06m tonnes. SteelHome informs Chinese ore inventories across ports as of July 26 rose 1.47% week-on-week. Even then inventories will have to climb further before they hit the May 2018 record high of 160.6m tonnes. China being an importer of such big volumes of iron ore, there inevitably is a strong correlation between ore prices globally and going beyond what it buys to actual end use. What automatically follows is that if iron ore keeps accumulating at ports and also with steel mills beyond certain volumes, prices of the raw material will come under pressure.

Take Singapore Exchange where ore with 62% contained iron hit an 18-month high of $143.60 a tonne On January 3 and since then the market is facing headwinds. Expectedly, the causes of iron ore bearishness are mostly on account of the woes of the Chinese economy and that includes insufficient domestic demand for steel and falling prices eroding margins of steelmakers. For instance, China’s gross domestic product decelerated to 4.7% on the year in the second quarter in 2024 from 5.3% in the January-March quarter. Moreover, the country’s factory activity contracted for a third straight month in July, leaving the economy in a weak trajectory.  

The official manufacturing purchasing managers’ index for July was 49.4 according to China’s National Bureau of Statistics. The number was slightly worse than June reading. A Singapore based iron ore merchant trader visiting India told DCI: “We hope following the recent Chinese Communist Party politburo meeting, President Xi Jinping would turn the focus on boosting consumption to combat ‘insufficient domestic demand.’ The major challenge is to revive the real estate sector and fund infrastructure development through appropriate stimulus. All this will generate domestic demand for the steel industry and in turn for iron ore.”

Every time there is a dip in ore prices, buying for delivery to China sees a spurt and that explains the relentless accretion in port stocks all this while. Chinese steel industry’s working experience says profits become elusive once iron ore costs more than $100 a tonne. Now production and demand are down, steel prices are agonisingly low and mills in order to avoid growth in factory stockpile of steel products have turned into aggressive exporters allegedly often at below production cost. In the given circumstances, high ore imports by China could be either in anticipation of the government announcing at some point stimulus measures for the real estate sector or this could be yet another instance of part of national strategy to support build-up of inventories of a number of commodities, especially the ones with high import dependence.

(This is the first segment of a two-part series on the subject. For the second and concluding part of the article, click here)

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