In November 2024, India’s iron ore exports fell 55% year-on-year and 24% month-on-month to 1.82 million tonnes. This is evidenced by CYBEX data, Kallanish reports.
The main reason behind the sharp decline was weak activity in the key market of China, which accounts for about 90% of India’s iron ore exports. Chinese steelmakers prefer lower-grade ore, which helps in reducing costs amid volatile steel prices. This was particularly evident in November, when iron ore stocks at Chinese ports increased 29% year-on-year to 148.05 million tonnes, significantly reducing the need for additional supplies from India.
Although China’s steel output rose 3% YoY to 78.4 million tonnes in November, weak domestic demand for finished products and high iron ore stockpiles in warehouses weighed on purchases.
India exported 35.9 million tonnes of iron ore in January-November 2024, down 3% from the same period in 2023. Meanwhile, exports of iron ore concentrate remained stable, while exports of pellets fell 15% to 7.77 million tonnes.
The decline in pellet exports was driven by a significant increase in domestic consumption in India. Direct reduced iron (DRI) production has increased by about 9% since the beginning of the year, leading to increased use of pellets by domestic consumers.
in November 2024, India’s iron ore imports rose to a six-year high of 1.19 million tonnes, with imports of the raw material crossing 1 million tonnes for the first time since December 2018. JSW Steel became the largest and only importer.
