India is a "net" exporter but consumes a growing amount domestically.
Of the total Indian iron ore production of 190 million tonnes, 85 million tonnes is consumed domestically of which 56% is bought on the open market by steel companies. While 28% is supplied by state-owned NMDC, the remaining comes from private miners who sell ore at spot prices.
Most of the iron ore exported out of India is in spot and in handymax vessels. Indian ore is costly compared to that of Australia, but it enjoys freight advantage over Brazilian cargo. However, Australian ore is cheaper as it is closer and moves on bigger vessels like Capesizes. Only one port in India has the capacity for these. Aussie ore is also much better quality.
India is much more exposed to dips in fe prices due to the higher cost of production and freight compared to that of Australia.
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