India’s steel mills significantly increased their overseas iron ore purchases this year, driving imports to a six-year peak.
This surge was motivated by the need to compensate for domestic shortages of high-grade ore and capitalise on the more favorable global prices for the key steelmaking raw material, according to a Reuters report.
Iron ore imports surpassed 10 million metric tons in the first ten months of 2025, representing a more than two-fold increase compared to the previous year.
The data was shared with the news agency by Lalit Ladkat, a senior analyst at CRU Group, which is headquartered in London.
India’s iron ore imports hits six-year peak
Between January and October of the current fiscal year, JSW Steel, which holds the distinction of being India’s largest steel producer by operational capacity, significantly increased its reliance on international markets for its iron ore requirements.
This aggressive procurement strategy has positioned JSW Steel as the country’s top buyer of iron ore from overseas suppliers during this ten-month period, according to detailed analyses from industry experts and confirmation from regulatory and company officials.
This surge in foreign sourcing is a crucial indicator of the dynamics currently shaping the Indian steel industry.
It suggests that domestic supply chains, either due to constraints in quantity, quality, or competitive pricing, were unable to fully satisfy JSW Steel’s massive consumption needs.
The company’s expansion plans and commitment to maintaining high-volume production have necessitated looking beyond India’s borders to secure the essential raw material for its blast furnaces and steel-making operations.
The preference for imported ore is likely influenced by factors such as the grade of available domestic ore, the logistics and cost of transporting it from mines to its coastal plants, and the stability of global iron ore prices during this timeframe.
Sourcing and supply chain dynamics
Ladkat stated that annual imports averaged 4.3 million metric tons between 2019 and 2024.
Ladkat noted that in 2025, domestic production was unable to meet demand, with the scarcity of higher-grade ores posing a significant problem.
He attributed the slowdown in supply growth partly to delays in commencing production at mines that had already been successfully auctioned.
Last month, the most senior civil servant within the Ministry of Steel issued a definitive statement, explicitly ruling out the existence of any current or projected shortage of iron ore supplies within the country.
This assurance comes at a critical time for the domestic steel industry, which relies heavily on a consistent and robust supply of the raw material.
The statement from the Ministry’s top official is intended to alleviate concerns among steel producers and related industries regarding raw material security, thereby supporting stable production levels and investment planning.
The underlying data and assessments leading to this conclusion suggest that current domestic mining capacity, coupled with existing stockpiles and logistical efficiency, is more than adequate to meet the demands of the nation’s steel-making sector for the foreseeable future.
Domestic shortfall, production hurdles
The increase in steel shipments was driven by the availability of low import prices, which made it economically viable for coastal steel plants—like JSW Steel’s facility in Maharashtra—to import materials, according to the Reuters report.
The main sources of iron ore imports for India include Brazil, Oman, and Australia.
According to the commodities consultancy BigMint, production was lower this year because of heavy rainfall in the eastern state of Odisha. Odisha is a key region for India’s iron ore, contributing nearly 55% of the country’s total output.
Imports may exceed 11–12 million metric tons in FY26 and could remain elevated next year as well if domestic production or captive sourcing does not improve.
India, the world’s second-largest crude steel producer, saw an increase in iron ore output to 289 million metric tons in fiscal 2025, up from 277 million metric tons the previous year, based on government data.
This rise in production comes as the government, earlier in the year, expressed worry over the slow development of new (greenfield) iron ore mines and simultaneously encouraged steel mills to secure iron ore mines internationally.
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