RE: India / Brazil24 Feb 2026 06:28
Indian iron ore demand is surging, with 1H25 imports rising over 80% due to a >9% increase in domestic steel production and high-grade ore shortages. Domestic demand, driven by infrastructure growth, has caused exports to fall over 45%. Imports of ore and pellets may exceed 11–12 million tons in FY26.
CRU Group
Key details regarding Indian iron ore demand:
Soaring Demand & Imports: Domestic crude steel production grew by over 9% in 1H25, making India the fastest-growing major producer. This rapid growth has led to a surge in high-grade iron ore imports, which increased over 200% between January and October 2025 to 9.8 million tons.
Import Sources: India is increasingly relying on imports from Brazil, Oman, and Australia to meet the high-grade requirements of its blast furnace operators.
Falling Exports: Due to strong internal demand, India's iron ore exports have dropped by more than 45% in 1H25.
Production vs. Demand Gap: While steel production is growing at 8-9% annually, domestic iron ore production is only rising at 4-5%. This gap has created a reliance on imports, which may exceed 11–12 million metric tons in FY26.
Key Drivers: The surge in demand is supported by heavy infrastructure investment, with the government increasing capital outlay for FY26 to ₹11.21 lakh crore (
billion).
Market Trends: JSW Steel has emerged as a major importer, particularly to supply its coastal plants. The government is also considering a 30% duty on low-grade iron ore exports to prioritize domestic supply.
The surge in demand is expected to persist as India aims to become a global hub for steel, with projections suggesting a potential doubling of steel production by the end of the decade.
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