India's Iron Ore Imports Reach Six-Year High in November 2024
Date:2024-12-09View:117Tags:Structural Steel Pipe,stainless steel cold rolled coils,"thick ss plate"
India's iron ore imports surged to a six-year high of 1.19 million tons in November 2024, marking a significant increase from both the previous month and the same period last year. According to BigMint, imports more than doubled compared to October 2024, which saw 0.47 million tons, and were substantially higher than the 0.84 million tons imported in November 2023.
This marked the first time since December 2018 that India imported over 1 million tons of iron ore in a single month.
Australia Leads Iron Ore Exports to India
In terms of source countries, Australia emerged as the largest exporter of iron ore to India, sending 0.77 million tons in November. Oman and Malaysia ranked second, each contributing 0.21 million tons. However, it is worth noting that much of the ore from Oman and Malaysia was originally Brazilian ore, processed and rerouted through these nations.
JSW Steel, India's largest steel producer, was the sole importer during this period, taking the entirety of the imported volumes.
Factors Driving Import Growth
Several factors contributed to the spike in imports. A major driver was a constrained domestic supply due to prolonged monsoon rains, which impacted mining operations and production. As a result, India's iron ore production struggled to keep pace with rising demand, creating a supply gap. Notably, production fell sharply during July and August, exacerbating the need for imports to fill the shortfall.
Fluctuations in global iron ore prices also played a role, making imports more attractive. In addition, logistical issues within India, combined with concerns over the quality of domestic ore, further tilted the balance toward foreign suppliers.
Impact on India’s Iron Ore Consumption
Although the volume of imports has increased, it remains relatively small in comparison to India's total iron ore consumption. With domestic production recovering after the monsoon and global iron ore prices rising in December, new import orders have slowed in recent weeks, according to industry sources.
Rise in Steel Imports from China
In the first seven months of the fiscal year 2024/2025 (April to October), India also saw a historic rise in steel imports from China. Imports surged by 35.4% compared to the same period in 2023, reaching a total of 1.7 million tons. A significant portion of these imports consisted of stainless steel, hot-rolled coils, galvanized sheets, and electrical steel.
The surge in both iron ore and steel imports highlights India’s ongoing reliance on global suppliers to meet its industrial needs, despite efforts to boost domestic production.
