China imported 755,939 mt of iron ore from India in August, up 49% from 506,322 mt in July, according to data released Monday by the General Administration of Customs.
The increase comes on the back of Indian government talks of a possible reduction in iron ore export tariffs -- to about 20% from 30% currently -- with the aim of reviving ore export volumes and boosting dollar inflows into India, in the face of increasingly serious current account deficit problems.
Several market participants also said they expected mining restrictions in the major ore-producing western Indian state of Goa to be lifted as soon as October, a marked change from earlier estimates that it would take at least three years for mining activity to resume there.
Year on year however, Indian ore imports to China in August slumped 53%, highlighting the steady decline of a once-major supplier of the steelmaking raw material.
Iron ore imports to China from India have fallen steadily since New Delhi increased export duties to 30% from 20% in December 2011, while various mining bans were introduced in the states of Goa from September 2012 and Karnataka in August 2011.
Imports from Australia, China's main supplier of iron ore, in August stood at 34.85 million mt, up 9.7% on the year but down 7.7% compared with July.
Brazil, the second-largest iron ore supplier to China, supplied 13.59 million mt of material in August, up 10% on the year and 3.4% from July.
China, the world's largest buyer of iron ore, imported a total of 69.01 million mt of the material in August, up 10.5% year on year, but down 5.6% from 73.14 million mt imported in July.
