Asia’s third-largest economy has raised export duties on iron ore and steel intermediates, from 30% to 50% on new iron ore and concentrates, and from zero to 45% on pellets. The government has also removed import duties on coking coal and coke.
India is one of China’s main suppliers of alternative iron ore, accounting for nearly 3% of China’s total imports in 2021.
However, Chinese purchases from the country fell sharply in the first four months of the year amid rising demand from India and falling iron ore prices.
“The impact of changes in India’s iron ore export tariffs is not significant,” said Cheng Peng, an analyst at Sinosteel Futures.
“The key issue is on the supply side, which will have a bigger impact on market expectations (India can offset the damage from the Ukraine-Russia conflict).”
The most-traded iron ore futures for September delivery on the Dalian Commodity Exchange closed up 4.4 percent at 864 yuan ($129.65) a tonne, after rising as much as 6.9 percent to a high of 884 yuan on May 6.
Iron ore futures for June delivery in Singapore edged up 0.6% to $135 a tonne.
Other steelmaking raw materials fell on the Dalian Exchange, with coking coal down 2.5 percent to 2,567 yuan a tonne and coke prices retreating from early gains to 3,370 yuan a tonne, down 0.8 percent.
Rebar for October delivery on the Shanghai Futures Exchange fell 0.2% to 4,604 yuan a tonne, while hot-rolled coil fell 0.3% to 4,731 yuan a tonne.
Stainless steel futures in Shanghai fell 2.2 percent to 18,535 yuan a tonne. ($1 = 6.6639 yuan) (Reporting by Zhang Min in Beijing and Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu)