India’s iron ore imports rose by 50 per cent y/y in the first five months

In the first five months of 2026, imports of iron ore and pellets into India reached around 4.8 million tonnes. This is almost 50 per cent higher than the figure for the same period last year, which stood at 3.2 million tonnes. This is according to BigMint.

The main driver behind this surge was the significant increase in supplies from leading domestic steel producers in Brazil, South Africa and the Middle East, against the backdrop of a substantial rise in domestic steel production.

Overall, by the end of the 2026 financial year, iron ore imports had risen to 12.35 million tonnes, setting a seven-year high. The main reasons for this trend were high demand for steel in the domestic market, a shortage of high-quality raw materials with low impurity content, as well as logistical and production constraints in the country’s key mining regions.

In May, import volumes rose to 1.24 million tonnes, compared with 0.98 million tonnes in April. Fine iron ore (agglomerated ore) and lump ore accounted for the vast majority of May’s shipments — 1.06 million tonnes — whilst pellets accounted for just 0.17 million tonnes.

The key importer in May was the JSW Steel holding company, which imported 0.72 million tonnes of raw materials. The company’s increased procurement was driven by the resumption of operations at the blast furnace at its Dolvi plant and the expansion of capacity at JSW Vijaynagar Metallics Ltd, which led to a sharp increase in steel production.

Brazil was the main global supplier to India in May (0.72 million tonnes), followed by South Africa (0.18 million tonnes) and Norway (0.16 million tonnes).

Over the first five months of the year, total iron ore imports are estimated at 4.28 million tonnes. At the same time, purchases of pellets from abroad fell sharply (to just over 400,000 tonnes) due to the conflict in the Middle East and disruptions to maritime logistics. The JSW Group was the key consumer of imported ore, accounting for 85 per cent of total shipments during the period in question. Brazil retained its position as the leading exporter, accounting for 56 per cent of all shipments to India in January–May.

According to BigMint, India is experiencing a severe depletion of high-quality ore reserves. The share of domestic production of ore with an iron content of over 65% in the 2026 financial year fell to 11%, compared with 20% in the 2017 financial year. Indian ore typically has a high silicon and aluminium content. Brazilian ore, by contrast, is characterised by a high iron content (Fe 64–65 per cent) and minimal silicon impurities. The use of imported ore allows steelmakers to optimise blast furnace processes and achieve higher energy efficiency.

Fearing further disruptions to supply chains due to the conflict surrounding Iran, as well as rising fuel and freight costs, Indian companies sought to build up maximum stockpiles of raw materials. Global market conditions also contributed to this: improvements in maritime transport and a decline in demand for steel in China have freed up significant volumes of ore and made pricing more flexible.

Global mining giants, such as Vale, are increasingly viewing India as their next key sales market. Given the long-term downward trend in steel production in China, the focus of global raw material suppliers will shift ever more strongly towards India in the coming years.

As reported by the GMK Centre, iron ore imports into India are set to rise to a seven-year high in the 2025/2026 financial year (ending 31 March) due to a domestic shortage of high-quality raw materials and demand from JSW Steel.

It should be noted that in the 2025/2026 financial year (ending 31 March), India increased its ore production by 7 per cent year-on-year to 310 million tonnes. This growth was driven by strong performance from major companies, though it remained concentrated amongst a limited number of them, highlighting the uneven supply conditions.