India’s iron ore exports to China plummet in FY25, realisations down

 Average realisations, sources said, were around the $100 per tonne range for Indian exporters, 17 per cent down on a y-o-y basis, as against $120 mt for FY24.
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MELANIE BURTON

Iron ore exports to China, the largest buyer from India, have near halved in FY25 to 24.14 million tonnes (mt), as against the 45.36 mt in the year-ago-period following an economic slowdown and a glut in steel production in Asia’s largest economy. Iron ore is key feedstock material in steel-making.

China, the world’s largest crude steel producer, accounted for 80 per cent of the iron-ore shipments from India; slightly lower than the 86 per cent average it has maintained over a six-year-period (FY20 – FY25), data sourced from market research firm, BigMint, said. Supplies to the Asian nation had peaked in FY24, when nearly 95 per of the exports, or 45.4 mt (out of 47.8 mt) went there.

Average realisations, sources said, were around the $100 per tonne range for Indian exporters, 17 per cent down on a y-o-y basis, as against $120 mt for FY24. Existing iron ore price is around $110 per tonne range.

Exports down

Overall, iron ore exports shipments saw a sharp 35 per cent decline y-o-y to 30.92 mt, from the 47.8 mt in the year-ago-period, according to the data showed. Exports of iron ore fines and lumps were recorded at nearly 24 mt, while pellet sales overseas were assessed at 6.8 mt in the just-concluded fiscal.

In FY’24, iron ore exports stood at 36.5 mt and pellets over 11 mt, a three-year high.

“Demand for iron ore and pellets was lower because of a decline in steel production in FY25,” a market participant told businessline. China produced 924 mt of crude steel between April 2024 and February, a slight decline of one per cent, y-o-y, as per data published by the World Steel Association (WSA).

Steel production there has slowed down on account of spiralling debt crisis and overcapacity in the real estate and construction sector – key consumer industries, slowdown in infrastructure projects, among other factors.

“Therefore, even though iron ore imports (may look) high, the general slowdown in demand led to accumulation of port inventories in China which further weighed on demand,” BigMint said in its report.

Other major buyers of iron ore – pellets and lumps – from India included Malaysia at 1.74 mt, up 176 per cent; Indonesia – down 44 per cent to just 0.52 mt.

Port Traffic Down

Overall iron ore shipments – export and imports – are down over 18 per cent to 50 mt for FY25; as against 61 mt in FY24. Maximum shipments moved through east coast ports of Paradip and Vizag – around 23 mt, down 12 per cent y-o-y; and 11.6 mt, down 26 per cent. The two ports account for nearly 70 per cent of the country’s iron-ore traffic, as per data from India’s Ports, Shipping and Waterways Ministry.

Other major ports for movement of iron ore included Momugao, New Mangalore , Kandla and Mumbai. Smaller shipments happened through Kolkata and Haldia docks and Chennai.

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Published on April 11, 2025