Almost 92% of Indian iron ore exports, totaling 40.40 million tonnes during the April to February period of FY24, were directed to China. This marks the highest shipment percentage over a seven-year period and the second-highest volume since 11M FY21 when exports to China reached 47.73 million tonnes. In the same 11-month period of FY24, India's total iron ore exports reached 44.23 million tonnes, showing a significant 162% year-on-year increase, with shipments to China rising by nearly 200%.
Iron ore is a crucial raw material for steel production, with approximately 83% of Indian exports heading to China over the last seven years. Despite this, smaller quantities were also exported to countries like Malaysia and Indonesia, while exports to West Asian nations such as Saudi Arabia, Qatar, and the UAE remained minimal.
Reports suggest that Chinese iron ore imports in the first two months of 2024 grew by over 8% year-on-year, attributed to steelmakers restocking to meet production demands. China, being the largest consumer of iron ore globally, imported approximately 210 million tonnes during these two months.
Industry bodies, especially secondary steel manufacturers, have been advocating for export restrictions. The Federation of Iron Mineral Industries (FIMI) highlighted in a letter to the Union Steel Minister, Jyotiraditya Scindia, that iron ore and pellet exports haven't actually increased, particularly due to export duties enforced between May and November 2023. FIMI Secretary General, RK Sharma, emphasized that exported iron ores mainly consist of lower-grade fines with limited domestic market utility. He further explained the environmental hazards associated with fines accumulation and its impact on lump production, crucial for the steel sector. While the government has not announced any export restrictions yet, a senior ministry official stated they are closely monitoring the situation.
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