Indian Iron Ore Exports to China to Retreat in 2021
Iron Ore ExportsSouth China Morning Post

Indian Iron Ore Exports to China to Retreat in 2021

South China Morning Post reported that according to analysts India is not poised to become a major new supplier of iron ore to China, despite an

South China Morning Post reported that according to analysts India is not poised to become a major new supplier of iron ore to China, despite an increase in iron ore trade between the two countries in 2020. Analysts said “Increase of 21 million tonnes of iron ore imports from India was a mere 1.5% of the total 1.4 billion tonnes of iron ore that China imported in 2020. That is nowhere near enough to transform India into a key supplier. The increase in last year’s exports was commercially opportunistic, with Indian exporters taking advantage of China’s strong demand and sharply higher iron ore prices, all the while offloading surplus ore during a year in which domestic steel production was disrupted by the coronavirus pandemic. India’s protection of its domestic iron ore supply for its own steelmaking industry is also expected to stop it from becoming a major net exporter. Other hurdles include India’s 30% export duty on iron ore having more than 58% iron content, which makes it expensive for buyers such as China. We don’t see India as a meaningful alternative for Australia or Brazil in the long term.”

Wood Mackenzie senior iron ore analyst Ms Kim Christie said “India has traditionally been a swing supplier. We saw a tighter seaborne supply of iron ore last year, Chinese demand was unusually higher than anticipated and prices were great. India saw an opportunity to increase its exports, and there was also a bit of relaxation in selling ore outside of India. The volume of Indian iron ore exports this year to drift back towards 2019 levels”

According to China’s customs data, China’s imports of Indian iron ore rose 88% YoY in 2020 to 44.8 million tonnes from 23.8 million tonnes in 2019https://img.i-scmp.com/cdn-cgi/image/fit=contain,width=1098,format=auto/sites/default/files/styles/1200x800/public/d8/images/methode/2021/01/22/68cb4942-5bd4-11eb-a99a-beae699a1a1d_image_hires_045058.jpg?itok=3OBKO2A1&v=1611262270

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