Iron ore prices surge, but export curbs play spoilsport for Indian firms

An unexpected surge in Chinese demand has sent global iron ore prices to a six-and-a-half-year high but export restrictions prevent Indian companies from taking advantage

In the first half of calendar 2020, Indian mining groups led by those based in Odisha doubled iron ore shipments to China to 20 million tonnes over the same period last year. What explains this unexpected surge when the pandemic has suppressed global demand severely? “Surprisingly strong Chinese demand, a supply dislocation in the world’s second-largest iron ore supplier Brazil and Chinese steelmakers’ informal decision to progressively reduce their overwhelming dependence on Australia are aiding Indian ore exports this year,” H C Daga, a former president of Federation of Indian Mineral Industries (FIMI), explained. 

Quoting figures from China’s Customs administration,