Iron ore exports to China fall to 6.4%
BEIJING: India's share in Chinese imports of iron ore has fallen drastically to 6.4% in October, the latest Customs data showed. The slowdown began last year when India met only 20% of Chinese requirement. Chinese buyers have now begun to source this crucial steel making component in larger quantities from other markets.
"It is a wake-up call. There is still a lot of demand for Indian iron ore among hundreds of small and medium steel makers in China who find it more economical as compared to ores from Brazil and Australia. India should make efforts to preserve this traditional market," said B Goswami, an iron ore expert and president of International Inspection and Consultancy.
Customs data showed that India exported 2.91 milliPon tonne of iron ore to China in October, a fall of 44% as compared to the same period last year. October exports were also down a sharp 39% from supplies in September. It appears that the Karnataka government's decision to ban iron ore supplies, which was upheld by the court last Friday, was an important reason behind the fall. Karnataka accounts for one-fourth of Indian supplies to China.
Chinese buyers have begun to buy more from Brazil with imports from the country rising 3.3% to 11.78 tonne in October. Another reason for importing less Indian ore is the overall reduction in Chinese buying, which fell 13% in October compared to the previous month.
"It is a wake-up call. There is still a lot of demand for Indian iron ore among hundreds of small and medium steel makers in China who find it more economical as compared to ores from Brazil and Australia. India should make efforts to preserve this traditional market," said B Goswami, an iron ore expert and president of International Inspection and Consultancy.
Customs data showed that India exported 2.91 milliPon tonne of iron ore to China in October, a fall of 44% as compared to the same period last year. October exports were also down a sharp 39% from supplies in September. It appears that the Karnataka government's decision to ban iron ore supplies, which was upheld by the court last Friday, was an important reason behind the fall. Karnataka accounts for one-fourth of Indian supplies to China.
Chinese buyers have begun to buy more from Brazil with imports from the country rising 3.3% to 11.78 tonne in October. Another reason for importing less Indian ore is the overall reduction in Chinese buying, which fell 13% in October compared to the previous month.
PGDM 1 ST SEM
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