News
NEWS CENTER
15
2025 -
05
China Iron and Steel Association: It is difficult for India to stop supplying iron ore to China within five years
China Iron and Steel Association: It is difficult for India to stop supplying iron ore to China within five years
Recently, foreign media reported that Rana Som, the chairman of the National Mining Corporation (NMDC), India's largest iron ore producer, stated that India will slowly withdraw from the world iron ore market and may stop exporting iron ore to China within at least 5 years. Regarding this, Chi Jingdong, Deputy Secretary General and Chief Analyst of the China Iron and Steel Industry Association, stated that it is quite difficult for India to exit China's iron ore market within the next five years.
As a developing country, India has a demand for developing its steel industry and requires a large amount of raw materials. Therefore, India's use of iron ore for domestic steel production is understandable. However, India's steel industry does not match the development of its iron ore industry. Chi Jingdong pointed out that the amount of iron ore consumed in India's steel production is far less than its domestic iron ore production, so it will be difficult for its iron ore to exit the international market. ”Data shows that in 2010, India's steel production was 67 million tons, but its iron ore production reached 210 million tons.
India has always held a restrictive attitude towards iron ore exports. Analysts have stated that the proportion of imported Indian ore into China has been declining. This year, China's total import of Indian minerals is expected to be 70 million tons, accounting for about 11% of the total import value, and this proportion will continue to decline in the future.
In recent years, India has continuously increased its restrictions on iron ore exports. In April 2010, India announced an increase in export tariffs on iron ore blocks from 10% to 15%; The Indian Ministry of Railways has raised the railway freight rate for exporting iron ore by 100 rubles per ton. In March 2011, India decided to increase its export tariffs on iron ore, with fine ore increasing from 5% to 20% and lump ore increasing from 15% to 20%.
In addition to raising relevant taxes and fees, India has also imposed restrictions on iron ore exports. In July 2010, the second largest iron ore producing state in India, Karnataka, implemented an iron ore export ban, forcing many mines in the state to close. Afterwards, the Indian state of Odisha also restricted the supply of iron ore. In October of this year, the Secretary General of the Indian Ministry of Steel proposed a ban on domestic iron ore exports in order to safeguard mineral resources for the country's rapidly growing economy.
The above-mentioned person stated that a large proportion of India's exported iron ore is low-grade ore, and coupled with the continuous decline in the proportion of imported Indian ore, it is expected that the changes in India's iron ore exports will have a relatively small impact on China.
Copyright © 2024 Tianjin Tianxin Metal Products Co., Ltd.