Sources said there has been talk in the market lately about a possible ban on shipments of iron ore products from India to China due to ongoing political tensions between the two nations and the former’s recovering domestic demand.
“The most likely reason behind the calls for a ban on exports of all iron ore products [from India] to China was because of the border tensions between the two countries,” a Singapore-based trader source said.
“It also seems like domestic consumption in India is making a strong comeback and domestic supply of iron ore is facing a shortage, prompting calls for a ban,” a Hong Kong-based trader said.
There has been a lower number of shipments of iron ore pellets to China from India, but those for low-grade iron ore fines are still quite consistent, according to a Shanghai-based analyst.
The Hong Kong-based trader believes that a ban would...