India's iron ore exports to China are at the highest level in three years!

China became the largest buyer of iron ore imports from India in the April-November 2023 period, with a 400% annual increase in iron ore imports, totaling 24.75 million tons. This figure is the highest export amount in the last three years and the second highest level since fiscal year 2020.

While China uses iron ore only for steel production, India competes with China in global markets with its finished steel products such as hot rolled coils. Almost 95% of India's iron ore shipments this fiscal year were diverted to China, with small quantities going to countries such as Indonesia, Malaysia and South Korea.

India's steel producers have expressed concerns about increased steel shipments adversely affecting domestic market dynamics and prices. This situation turned India from being a net exporter of steel for three years to a net importer. Iron ore exports to China have increased significantly in the last five years, in line with the high iron ore prices due to Chinese demand. There is also a significant increase in China's iron ore imports from Australia and Brazil.