China's Hebei Province has indicated that, of all its imports, it spends most money on iron ore. As iron ore prices increased this year, Indian iron ore characterized by good quality has been well received by steel mills in Hebei Province.
In the first three quarters of 2010, the total value of imported iron ore entering Hebei from India more than doubled year on year - five times the rate of increase of iron ore imports from Australia. However, recently Karnataka state in India decided to restrict iron ore exports, while furthermore India plans to construct several large steel mills and so in future the volume of iron ore imports ex-India will decline.
At the end of July, Karnataka state in India announced its decision to halt iron ore exports from 10 ports to punish illegal mining. On November 19, a court in Karnataka announced that the export restrictions will continue. Karnataka state previously produced one quarter of iron ore exported by India.