Iron ore production in India rose by 17% y/y in 1H2026

In the first half of 2026, iron ore production in India showed rapid growth, rising by 17% compared with the same period last year to 184 million tonnes. This is according to data from BigMint.

The main factor behind this growth was the expansion of operational capacity by the country’s two largest mining companies — the National Mineral Development Corporation (NMDC) and the Odisha Mining Corporation (OMC). Furthermore, the rapid development of deposits and the commissioning of new facilities led to an exponential 176% increase in production by Lloyds Metals and Energy Limited (LMEL).

As a result, commercial production volumes in the first half of the year rose by 25% – to 115 million tonnes, whilst production by domestic producers (for the internal needs of steelworks) increased by only 5%, totalling 69 million tonnes. Ore production figures outpaced the growth rate of steel production, which increased by 7% (to 87 million tonnes). This reflects a dramatic reversal of the trend compared with the first half of 2025, when ore production lagged behind the metallurgical sector.

The growth in ore production was driven by a revival in the domestic steel sector: pellet output rose by 14% (to 63 million tonnes), whilst sponge iron output increased by 6%. Favourable domestic price conditions (which rose by over 10% — to an average of 5,600 rupees per tonne of fine ore in the state of Odisha) significantly improved business margins.

Exports provided a further boost, rising by 24% against a backdrop of stable demand from China and a weaker rupee.

Despite domestic growth, iron ore imports into India rose by 33% to 4.95 million tonnes, indicating a shortage of high-quality raw materials and logistical problems within the country.

As reported by GMK Center, India could increase its iron ore production by almost 8% year-on-year in the 2026/2027 financial year – to 340–345 million tonnes from 316 million tonnes in the previous period. The increase in production will be driven by the expansion of mining capacity, primarily by private operators, whilst growth in steel production remains moderate. Consequently, supply is likely to be absorbed into stockpiles or require redirection to export markets. This is creating early pressure on the domestic market balance.

Share
Published by
Yuriy Grigorenko
Tags: India iron ore
  • Industry

Construction works in Ukraine rose by 17% y/y in 2025

In 2025, the value of construction work in Ukraine exceeded 258 billion UAH, which is…

Thursday July 16, 2026
  • Global Market

The UK government has nationalised British Steel

The British government has announced that British Steel is to be brought under state ownership.…

Thursday July 16, 2026
  • Global Market

European carbon prices rose to €82/t in July

According to ICE, European carbon prices (EUA, December 2026 contract) fluctuated in July between €79.4…

Thursday July 16, 2026
  • Industry

Ukraine saw its iron ore exports fall by 25.4% y/y in 1H2026

In January–June 2026, Ukraine’s mining sector saw iron ore exports fall by 25.4% compared with…

Wednesday July 15, 2026
  • Global Market

Industrial production in the EU fell by 0.1% m/m in May

In May 2026, seasonally adjusted industrial production in the EU fell by 0.1% compared with…

Wednesday July 15, 2026
  • Global Market

Rio Tinto increased iron ore sales by 5% y/y in 1H2026

Mining giant Rio Tinto increased its iron ore sales by 5% in the first half…

Wednesday July 15, 2026