China’s dependence on India for iron ore has been declining in recent years. The ban on mining in Karnataka and Goa have exacerbated the decline of iron ore export from India to China.
Following this, China started relying more and more on South Africa and Australia for ore supply. In 2012, South Africa overtook India to become China’s third-biggest ore supplier, while Australia strengthened its dominant position as the major supplier to the world’s biggest iron ore consuming nation, data from customs showed.
In 2012, South Africa provided 40.6 million tonne, up 12 per cent compared to 2011, while Indian imports declined 54.74 per cent to 33 million tonne.
China imported a record of 743.6 million tonnes of iron ore in 2012, up 8.4 per cent on the year. Australia delivered 351.5 million tonne, or 47 per cent of China’s total imports over the year, up from 43 per cent in 2011, and its dominance is likely to increase further in 2013.
Australia’s position in China may be strengthened if the European iron and steel sector starts to recover this year, allowing the likes of South Africa and Finland to divert deliveries back to their traditional markets.
Some analysts feel that supplies from India may not recover in the near term, and are unlikely to reach previous high levels.
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