India’s iron ore fines and lumps exports fell by 67% y-o-y to 1.6 million tonnes in January 2025, down from 4.8mt a year earlier, while pellet exports slumped 74%, according to CYBEX trade data monitored by Kallanish.

With China accounting for nearly 90% of India’s iron ore and pellet exports, the decline reflects weakening demand from the country.

In January 2024, China’s domestic spot iron ore prices were 17% higher than this year’s levels, prompting mills to import low-grade fines and pellets from India due to cost advantages.

Typically, when Chinese iron ore prices are high and steel demand is sluggish, mills blend low-grade material with premium ores to optimise costs.

However, despite continued weak steel demand, ample iron ore availability and lower domestic prices in China have led mills to cut back on Indian imports this January, market participants note.

“As far as I know, portside inventories in China are currently 15-16% higher than last year. There’s no supply shortage, and the stimulus measures have failed to revive steel demand, which is why Indian ore exports have taken a hit,” a Singapore-based iron ore trader told Kallanish.

Beyond China, India has been exporting pellets to alternative destinations since 2024, such as the MENA region. Industry sources attribute this to Jindal Saw, which operates a 1.5mt/year pellet plant in Bhilwara, using 40% beneficiated magnetite ore from its captive mine. The ore, originally at 28% Fe, is upgraded to 65% Fe post-processing, but the final pellet contains only 62.5% Fe due to high additive content.

For 2024, India’s total iron ore and pellet exports reached approximately 38mt, down 14% y-o-y, with fines exports declining 10% to 30mt and pellet exports plunging 24% to 8mt, according to Indian customs data.