Surge in iron ore exports to China pushes up indices

Tribune News Service

New Delhi, August 11

At a time when there is a general clampdown on imports from China, Indian iron ore exports to that country have been instrumental in the Nifty 50 index touching a five-month high on Tuesday.

Metal stocks have led the recovery as China’s import of Indian iron ore is the highest since 2012 due to signs of a recovery in Chinese economic activity.

In the first six months of the year, India shipped 20 million tonnes of iron ore as against less than 10 million tonnes during the same period last year. The record for iron ore shipments over six months stands at 27.8 million tonnes in January-June 2012.

However for China, sourcing of Indian iron ore is a fraction of its total consumption. During the first six months of the current calendar year, China imported 547.2 million tonnes of iron ore, including 20 million tonnes from India. Iron ore futures in Singapore have also risen after Rio Tinto Group, a much larger supplier, reported robust demand from China.