Posted on 22 Jan 2024
NMDC does not intend to export iron ore to China amid “historic high” demand in the domestic Indian market, the miner says.
It was responding to earlier press reports citing sources as saying the Indian government had rejected an NMDC request to permit direct iron ore exports to China, whose iron ore imports hit a record-high 1.18 billion tonnes in 2023. The firm continues to auction its ore locally, with private exporters selling the ore to China.
“NMDC is scaling up production of iron ore to meet the demands of a thriving domestic steel market, earning higher sales realisations with zilch export,” the firm says in a note seen by Kallanish.
“India’s appetite for iron ore is on a historic high and NMDC is consumed and committed, catering to the demand from domestic steelmakers … Even though iron ore export prices are showing an increasing trend, the net sales realisations in the domestic market are superior.”
India exported 35.4 million tonnes of iron ore to China in January-November 2023, up 245% on-year, according to Indian commerce ministry statistics.
In the nine months through December 2023, NMDC sold 31.97mt and produced 31.79mt of iron ore, up 19% and 24% on-year respectively. It set its January prices for lump ore (65.5%, 6-40mm) at INR 5,600/tonne ($67) and fines (64%, -10mm) at INR 4,910/t.
Source:Kallanish
