Iron ore exports from India have seen a significant decline of nearly 30 percent in the nine-month period of the fiscal year 2025. This drop has been attributed to weaker buying from China, the largest buyer of Indian iron ore. China accounted for approximately 90 percent of India’s iron ore shipments during this period, importing 20.17 million tonnes.
The slowdown in China’s iron ore imports from India is a result of excess steel stocks, iron ore stockpiles, and tightening import policies in India. This has led to a decrease in demand for Indian iron ore in the Chinese market. In contrast, China has been increasing its iron ore imports from other major sourcing nations like Australia and Brazil.
Despite the decline in India’s iron ore exports, China has been increasing its overall iron ore imports for the past two years. In 2024, China imported 1.24 billion tonnes of iron ore, a 5 percent increase from the previous year. This increase in imports can be attributed to the lower iron ore prices globally, which China has taken advantage of to boost its raw material supplies.
However, the steel production in China has declined, leading to a 2.7 percent decrease in production in the 11 months of 2024. This slowdown in steel production has further impacted the demand for iron ore in China.
In conclusion, the drop in India’s iron ore exports to China highlights the changing dynamics of the global iron ore market. As China continues to be a major player in the steel industry, fluctuations in its demand for iron ore have a significant impact on exporting countries like India.
