News Global Market India 827 18 December 2024
The sharp decline was driven mainly by lower demand from China and an increase in domestic steel production
Mining companies in India in November 2024 reduced iron ore exports by 55% compared to the same month in 2023, and by 24% compared to the previous month – to 1.82 million tons. This is evidenced by CYBEX data, Kallanish reports.
The main reason for 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 low-grade ore, which helps limit costs amid volatile steel prices. This was especially true in November, when China’s port stocks of iron ore increased by 29% year-on-year to 148.05 million tons, significantly reducing the need for additional supplies from India.
Although steel production in China increased by 3% y/y – to 78.4 million tons in November, weak domestic demand for finished products and rising iron ore stocks in warehouses negatively affected purchases.
In January-November 2024, Indian mining companies exported 35.9 million tons of iron ore, which is 3% less than in the same period in 2023. At the same time, exports of iron ore concentrate remained stable, while shipments of pellets decreased by 15% to 7.77 million tons.
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 an increase in the use of pellets by domestic consumers.
As GMK Center reported earlier, in November 2024, imports of iron ore by Indian steelmakers rose to a 6-year high of 1.19 million tons, while in the previous month this figure was 0.47 million tons, and in November 2023 – 0.84 million tons. Imports of raw materials exceeded 1 million tons for the first time since December 2018. JSW Steel became the largest and only importer.
