In the January-September period of this year, China imported 31.13 million mt of iron ore from South Africa, up 17.8 percent year on year and accounting for 5.7 percent of China’s total volume of iron ore imports, according to China’s General Administration of Customs. Meanwhile, in the given period, China imported 32.35 million mt of iron ore from India, down 47 percent on year-on-year basis and consisting of 5.8 percent of China’s total iron ore imports.
Many market players have predicted that, if the above trend continues, South Africa may replace India as China’s third-largest source of iron ore imports, after Australia and Brazil.
In previous years, India has been a important source of iron ore imports for China, with its iron ore exports to China amounting to 123 million mt in 2009, accounting for 25 percent of China’s total iron ore imports in the year in question. However, the Indian government has since restricted iron ore exports by increasing export taxes and railway freight charges, as part of its efforts to support Indian domestic steel production. In the months from June to September this year, India’s iron ore exports to China amounted to 4.82 million mt, 2.53 million mt, 1.625 million mt and 788,000 mt respectively, indicating sharp month-on-month declines.
On the other hand, the annual iron ore output capacity of South Africa-based Kumba Iron Ore Ltd (Kumba), whose majority shareholder is London-based multinational miner Anglo American, is expected to reach 53 million mt by 2013 and to total 70 million mt by 2019. South Africa’s iron ore production is mainly controlled by Kumba Iron Ore.