Iron Ore Imports in India Likely to Reach 7-Year High in FY26

India’s iron ore imports are projected to reach 12-14 million tonnes in FY2025–26, more than twice the previous year. As per a report by Reuters, this would be the highest level recorded in the past 7 years. 

The increase is linked to the limited availability of high-grade ore required by steel producers, even as overall supply in the country remains strong. 

Domestic Output Continues to Grow 

Iron ore production in India is expected to rise to 305 million tonnes in FY2025-26, compared to 289 million tonnes a year earlier. Mining activity has been expanding, with output increasing across key regions. 

However, the rise in production has not fully addressed the demand for higher-grade material used in certain steelmaking processes. 

Demand from Steel Plants 

Steelmakers are sourcing imported ore to meet specific requirements. JSW Steel, which operates plants in Maharashtra and Karnataka, has been among the main importers. 

Imports are being used alongside domestic supply to maintain consistent input quality at plant level. 

Import Sources and Export Trends 

Brazil and Oman together account for around 70% of India’s iron ore imports. A recent shipment of Jimblebar Fines from BHP has also been directed to India, showing changes in trade flows. 

At the same time, India’s iron ore exports are expected to reach 29 million tonnes, up 26% year-on-year. Most exports, about 85%, are shipped to China and largely consist of low-grade ore. 

Pellet Imports Likely to Decline 

Imports of iron ore pellets may reduce in FY2025-26. India had increased purchases from Iran over the past year, but supply may be affected by ongoing tensions in the Middle East. 

From April to February, pellet imports stood at 1.88 million tonnes, significantly higher than the previous year. 

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Conclusion 

Higher production has not removed the need for imports, as grade differences and plant requirements continue to influence sourcing patterns. 

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