Iron ore exports from India were down 53 per cent in the past two months as China, a major consumer, took better quality ore from Australia to feed its integrated steel plants, taking advantage of a slump in global prices, reports Macquarie Research.
Macquarie Research says after a surge in iron ore export to 49 million tonnes (mt) in March, these slumped to 23 mt in May. With seaborne ore prices down 40 per cent from the peak in late February, the Indian high-cost export is fading away.
Shipments from Goa have become unviable and volumes from the east coast have started diverting to domestic markets, it said.
Spot iron-ore prices have slumped to $55 a tonne, from a recent peak of $94.5 a tonne in late February.
Indian iron ore production saw 23 per cent growth in FY17 over a year before, at 190 m. The report forecasts production to grow to 206 mt, up eight per cent. With declining export, it expects a domestic surplus of 18 mt in FY18, adding to the surplus of 14 mt in FY17.
Macquarie Research
