In January-June 2024, Indian mining companies increased iron ore exports by 20% compared to the same period in 2023, to 20.26 million tons.
Exports of iron ore pellets in January-June increased by 18% y/y – to 5.4 million tons. The largest importer of iron ore pellets from India is China – 18.8 million tons (+15.3% y/y). The main exporters of raw materials for 6 months are Rungta Mines – 4.35 million tons, JSW Steel – 3.41 million tons, and Vedanta – 1.93 million tons.
In June, export volumes fell by 19% month-on-month – to 2.64 million tons.
The main factors behind the growth in shipments of Indian raw materials include increased demand from China, improved production by companies in Karnataka, and favorable iron ore prices during the period.
The Indian iron ore market is expected to fluctuate in the near future due to the increase in inventory levels in China and a drop in export profitability. Pressure on prices from Chinese buyers could potentially reduce total exports.
As a reminder, India is considering the creation of the country’s first iron ore exchange to determine the domestic selling price of raw materials. This proposal was submitted by a group of experts appointed by the government. The proposed exchange will record real-time transactions and physical deliveries of iron ore.
In 2023, India increased iron ore production to a historic high of 282 million tons, up almost 14% year-on-year. In particular, miners increased volumes due to stimulated demand from rising steel production in the country, and export demand also increased.
