Rising Indian export tariffs leads China’s iron ore futures price to soar on May 23

China’s iron ore futures price hiked by around 6.4% on May 23 because India raised export tariffs on iron ores and concentrates to 50% and pellets to 45%, which might tighten the market supply.

India is not only a large producer but also a big export country. In the fiscal year 2021 to 2022, the total exports from India were over 20.5 million tons, which hit a record high.

Rising export tariffs will make the supply market much more under pressure, so the prices of iron ore were expected to grow in a short term.