Iron ore pellet exports also increased by 18% annually, reaching 5.4 million tons. The primary destination for these pellets was China, with the country importing 18.8 million tonnes, up 15.3% from the previous year.
The leaders in exports in the first half of the year were Rungta Mines with 4.35 million tons, JSW Steel with 3.41 million tons, and Vedanta with 1.93 million tons.
However, in June, there was a 19% monthly decrease in export volumes, falling to 2.64 million tons. This decline was due to volatile market conditions affected by changing stock levels in China and an improving export economy.
The increase in exports can be attributed to rising demand from China, increased production capacities in Karnataka, and favorable pricing dynamics for iron ore during the period. Going forward, market analysts foresee potential volatility resulting from inventory shifts in China and possible price pressures from Chinese buyers.
In response to market dynamics, India is contemplating the establishment of its inaugural iron ore exchange to establish transparent domestic pricing mechanisms. Proposed by a government-appointed panel of experts, this exchange aims to track real-time transactions and physical deliveries of iron ore across the country.
In 2023, India achieved a record-high iron ore production of 282 million tons, spurred by increased demand from a booming steel sector and robust export requirements.
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