China's steel industry will not be affected by India's iron ore export limits, even though the neighboring country recently announced an increase in the export tax for multiple iron ore categories from May 22.

In 2021, China imported 33.42 million tons of iron ore from India, accounting for only 2.97 percent of the total import volume of 1.12 billion tons, Wang Guoqing, research director at Beijing Lange Steel Information Research Center, told the Global Times on Thursday.

"In the first quarter of 2022, China's iron ore import volume from India was 5.36 million tons, a year-on-year drop of nearly 71 percent, further showing that Indian iron ore export limits won't affect the Chinese steel industry," said Wang.

However, data showed that 31 percent of pellets, a processed ball-shaped iron ore, were imported from India, and the export tax was raised from 30 percent to 45 percent. Wang agreed that some Chinese enterprises that need pellets will be affected.

Wang suggested that India's iron ore export limits may be caused by its domestic demand. "India wants to secure the supply for its domestic steel industry amid global commodity price turbulence," she said.

Global Times