Bloomberg reported that India may become a key future customer for iron ore producers in Australia as its steel industry grows and the nation seeks to raise living standards.

Mr Nev Power CEO of Fortescue Metals Group Limited said that “India will be an incredibly important market for us. We see the steel industry in India developing along the coastal seaboards, in the same way that we are seeing that transition in China.”

Mr Power said that “Efforts to improve living standards in India and also in nations across South Asia and North Africa will need “urbanization and industrialization and therefore steel. There are 3.5 billion people living in the world’s developing economies right there in this region, two or three weeks sailing time from the Pilbara.”

Atlas Iron Limited, a producer with mines in the Pilbara region of Western Australia, made its first shipment to India in May and has staff visiting the country to develop ties to potential customers. Mr Ken Brinsden MD of Atlas Iron said that “We all got caught by surprise back in 2003 and 2004 by China. One of the lessons I hope we have learned is that we should keep an eye on places like India, where you have got the potential for massive growth in urbanization.”