India’s iron ore exports rose by 20% y/y in January – June

In the first half of 2024, Indian mining companies exported 20.26 million tons of iron ore, marking a 20% increase compared to the same period in 2023. Iron ore pellet exports rose by 18% year-over-year to 5.4 million tons, with China being the largest importer, receiving 18.8 million tons, up 15.3% y/y. The primary exporters in the first six months were Rungta Mines (4.35 million tons), JSW Steel (3.41 million tons), and Vedanta (1.93 million tons).

However, in June, export volumes decreased by 19% month-on-month to 2.64 million tons. The growth in shipments was driven by increased demand from China, improved production in Karnataka, and favorable iron ore prices. Despite this, the Indian iron ore market may face fluctuations due to rising inventory levels in China and reduced export profitability, with potential price pressure from Chinese buyers possibly reducing overall exports.

India is also considering establishing its first iron ore exchange to determine domestic raw material prices, as proposed by a government-appointed expert group. This exchange would track real-time transactions and physical deliveries of iron ore.

In 2023, India reached a historic high in iron ore production, totalling 282 million tons, a nearly 14% increase from the previous year. This increase was fueled by higher domestic steel production and rising export demand.