India’s imports of iron ore, a key raw material in steelmaking, are set to rise to a
seven-year high in the fiscal year ending on March 31, driven by
a shortage of high-grade ore and demand from JSW Steel
, analysts and industry executives said.
Overall imports are likely to reach 12 million to 14 million
metric tons in 2025-26, more than doubling from a year earlier,
analysts and trade officials said.
JSW Steel, India’s biggest steelmaker by capacity, was a key
driver of iron ore imports for its mills in the western state of
Maharashtra and the southern state of Karnataka, said Lalit
Ladkat, a senior analyst at London-basedconsultancy CRU.
A cargo of BHP’s Jimblebar Fines iron ore is
heading to India in a rare sale, driven by discounts on the
product that was banned for sale in China, Reuters reported last
week.
The bulk of India’s iron ore imports in the fiscal year
originated from Brazil and Oman, which together accounted for
about 70% of total shipments, Ladkat said.
Iron ore output in India, the world’s second-largest crude
steel producer, is expected to reach 305 million tons in the
2025–26 fiscal year, up from 289 million metric tons a year
earlier, according to commodities consultancy BigMint.
But exports of iron ore are expected to reach 29 million
metric tons, up 26% from a year earlier, with 85% of shipments
going to China, Ladkat said.
India mainly exports low-grade iron ore that is generally
not used by steel mills in the country, mining officials said.
In the fiscal year that begins on April 1, India’s iron ore
output is expected to rise as mines ramp up production, although
imports may continue depending on grade requirements and
plant-level supply dynamics, said Sumit Jhunjhunwala, vice
president at ICRA Ratings.
IRON ORE PELLET IMPORTS SET TO DROP
India, which has been importing cheaper iron ore pellets –
processed or value-added products – from Iran since last year,
is likely to see volumes decline due to the conflict in the
Middle East, analysts said.
“Indian pellet imports from Iran could decline amid
heightened geopolitical tensions and associated trade
uncertainties, while ample domestic pellet availability is
likely to constrain import demand,” BigMint said.
From April to February, India imported 1.88 million metric
tons of iron ore pellets, up six times from a year earlier.