India increases iron ore imports amid shortage of high-quality raw materials

India increased its iron ore imports to a six-year high of over 10 million tons in January-October this year, Reuters reports.

As noted by Lalit Ladkat, senior analyst at London-based CRU Group, these volumes are more than twice as high as in the first 10 months of 2024. According to him, average imports during 2019-2024 amounted to 4.3 million tons per year.

Ladkat noted that demand exceeded domestic production this year, and the availability of higher-grade ore was a serious concern. One of the reasons for the slowdown in supply was delays in starting production at mines that had already been put up for auction.

The country’s steel mills have stepped up purchases abroad to overcome the shortage of high-quality ore and take advantage of lower global prices for it, analysts and trade officials say. At the same time, in November, a senior steel ministry official ruled out any shortage of this raw material in the country.

The increase in supplies was facilitated not only by low prices, but also by favorable supply opportunities for steel mills near ports, such as the JSW Steel plant in Maharashtra. JSW Steel, the country’s largest steel producer in terms of capacity, was the main buyer of imported ore in January-October.

The country imports iron ore mainly from Brazil, Oman, and Australia.

According to consulting firm BigMint, heavy rainfall this year in the eastern state of Odisha, which accounts for nearly 55% of India’s total iron ore production, has led to a decline in production. They believe that in the 2025/2026 financial year (ending in March), imports could exceed 11-12 million tons. It may remain high next year if domestic production or own purchases do not improve.

According to government data, ore production in India in the 2024/2025 fiscal year increased to 289 million tons compared to 277 million tons a year earlier.

It should be recalled that India planned to introduce a 30% export duty on low-grade iron ore from October 2025. In this way, the country seeks to secure raw materials for steel producers, lower prices, and stimulate value-added exports. In the 2024/2025 fiscal year, India exported approximately 30 million tons of iron ore. Most of the exports were fine or low-grade ores, which are not subject to export duties.