India’s iron ore imports hit 6-year peak on domestic shortage, favorable global prices
Overview
India’s steel mills significantly increased their overseas iron ore purchases this year, driving imports to a six-year peak.
This increase was driven by the need to compensate for domestic shortages of high-grade iron ore and to take advantage of favorable global prices for this key steelmaking raw material, a point also confirmed in the Reuters report.
ndia’s iron ore imports surpassed 10 million metric tons in the first ten months of 2025, a figure that is more than double the volume recorded during the same period last year. These data were provided to Reuters by Lalit Ladkat, a senior analyst at the London-based CRU Group.
Import Surge and the Role of JSW Steel
Between January and October of the current fiscal year, JSW Steel, India’s largest steel producer by operational capacity, significantly increased its reliance on international markets for iron ore procurement. This aggressive purchasing strategy positioned JSW Steel as the country’s largest iron ore importer during this ten-month period, a development confirmed by industry analysts as well as regulatory and company officials.
This trend reflects significant developments in the supply chain of India’s steel industry. The data indicates that domestic supply chains, whether in terms of quantity, quality, or price competitiveness, have been unable to meet JSW Steel’s extensive demand.
The company’s expansion plans and efforts to maintain high-volume production have increased the necessity of sourcing iron ore from overseas.
The preference for imports can also be linked to factors such as the quality of domestic iron ore, the cost and complexity of transporting it from mines to coastal plants, and the stability of global prices during this period.
Supply and Supply Chain Dynamics
ccording to Ladkat, India’s annual imports averaged 4.3 million metric tons between 2019 and 2024.
He added that in 2025, domestic production was unable to meet demand, with the scarcity of higher-grade iron ore posing a major challenge.
He attributed part of the slowdown in supply growth to delays in commencing production at mines that had previously been officially auctioned and allocated.
However, last month, the top civil servant of India’s Ministry of Steel officially stated that there is no current or anticipated shortage of iron ore supply in the country.
This statement was made at a critical time for the steel industry to ease concerns about raw material security and to maintain stability in production and investment planning.
The Ministry’s assessments indicate that current mining capacity, existing stockpiles, and the country’s logistical efficiency are sufficient to meet the steel industry’s needs for the foreseeable future.
Domestic Shortfall and Production Hurdles
The increase in imports was also influenced by lower global prices, making procurement economically viable for coastal plants, including JSW Steel’s facility in Maharashtra.
India’s main sources of iron ore imports include Brazil, Oman, and Australia.
According to the consultancy BigMint, domestic production this year declined due to heavy rainfall in the state of Odisha. Odisha accounts for approximately 55 percent of India’s total iron ore output.
Imports could reach 11 to 12 million metric tons in fiscal year 2026 and may remain high next year unless domestic production or captive sourcing improves.
Domestic Production and Government Policies
India, the world’s second-largest crude steel producer, increased its iron ore output to 289 million metric tons in fiscal year 2025, up from 277 million metric tons the previous year.
Earlier this year, the Indian government expressed concern over the slow development of new (greenfield) iron ore mines and urged steel mills to secure or invest in overseas iron ore mines to ensure long-term supply.
