India Sees 20% Increase in Iron Ore Exports in H1

Despite calls from secondary steel manufacturers to stabilize supply, India's iron ore exports rose in the first half of the year.

According to Big.Mint, a market research firm in India, the country exported 20.26 million tonnes of iron ore from January to June 2024, marking a 20% increase compared to the same period last year.

During this period, iron ore pellet exports reached 5.4 million tonnes, an 18% rise from the previous year. China was the largest importer of Indian iron ore pellets, with imports totaling 18.8 million tonnes, a 15.3% increase from the previous year. Among the exporters, Rungta Mines led with 4.35 million tonnes, followed by JSW Steel with 3.41 million tonnes and Vedanta with 1.93 million tonnes.

While exports increased overall in the first half of the year, June saw a 19% month-on-month decline to 2.64 million tonnes due to efforts by the Indian government and the steel industry to stabilize the supply chain, as well as weakened demand from China.

Several factors contributed to the increase in India's iron ore exports in the first half of the year, including rising demand from China, increased production by companies in Karnataka, and favorable iron ore prices during this period.

The Indian iron ore market is expected to experience fluctuations in the near future due to rising inventory levels in China and decreased export profitability. Price pressure from Chinese buyers, in particular, could potentially reduce overall exports.

Meanwhile, the Indian government is considering establishing the country's first iron ore exchange to determine domestic raw material prices. This proposal, submitted by a government-appointed expert group, would see the exchange record real-time trading and physical delivery of iron ore.