India Halts Iron Ore Exports to Japan and South Korea

28 June 2021
India Export Data

India no longer wants to export iron ore to Japan and South Korea as it has not renewed a long-term agreement (LTA) for supplying ore to Japanese steel mills and South Korean major Posco after upon its March expiry. The government of India took the decision in view of the uncertainty over investment plans of steel mills from these countries in India and shortage of major raw materials for steel-making in India. According to Export Genius, India exported iron ore worth USD 3,874 million to the world in 2020. That dollar amount includes USD 176 million worth of iron ore exports to Japan and USD 52 million to South Korea.


India Exports Iron Ore to Japan and South Korea 2017-2020


Japan was India’s second largest export destination of iron ore, while South Korea was sixth-largest in 2020. According to India export data of iron ore, India’s exports of iron ore to Japan increased from 2017 to 2020, except 2018, when value of shipments declined. India’s iron ore exports to South Korea rose from 2017 to 2019, while year 2020 recorded a significant decline in value of iron ore exports. Below given chart shows dollar amount of India’s exports of iron ore to Japan and South Korea recorded from 2017 to 2020.



Year

Exports to Japan (USD Million)

Exports to South Korea (USD Million)

2017

140.3

63.6

2018

101.7

97.5

2019

169.5

117.2

2020

176.0

52.8

 


India Exports Iron Ores 2014-2020


India is the sixth-largest exporter country of iron ore in the world, which shared 2.8% value to total exports in 2020. If we see India’s exports of iron ore in past years, we found that the value of iron ore shipments constantly rose from 2014 to 2020. Here are values in percentile of India iron ore exports reported in the given period.



Year

Value USD %

2014

1.53

2015

1.19

2016

6.7

2017

8.8

2018

12.0

2019

17.7

2020

32.6

 


India’s Top 10 Export Destinations of Iron Ore 2020


India’s top export destination of iron ore is China, which shared whopping 87.1% value to total exports in 2020. See the given list of India’s top 10 export partners of iron ore with share in values reported in 2020 and analyze the market.



Country

Value USD %

China

87.1

Japan

4.5

Malaysia

1.9

Oman

1.9

Indonesia

1.5

South Korea

1.4

Brazil

0.5

Vietnam

0.4

Poland

0.2

Egypt

0.2

 


Iron ore supply agreements with Japan and South Korea have been in existence for around six decades; these got renewed uninterruptedly as New Delhi’s goodwill gesture to the two Asian countries. India has free trade agreements with both Japan and Korea. In 2020-21, India imported 4.75 MT steel in which South Korea has the largest share and Japan, the third largest.

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