Why India's iron ore imports are at a seven-year high despite ample reserves

Subscribe to enjoy similar stories. MUMBAI: A global glut of high-grade iron ore is reshaping India’s raw material economics—and pushing steelmakers to import more at home’s expense. The country's iron ore imports climbed to a seven-year high in 2025, as shortages of high-grade domestic ore, softer international prices and logistical challenges pushed steelmakers to look overseas—raising concerns over raw material security just as capacity expansion accelerates.

India imported 12.2 million tonnes of iron ore in calendar year 2025, nearly double the previous year, according to commodities market intelligence firm BigMint. Brazil and Oman emerged as the largest suppliers, with JSW Steel alone accounting for nearly 80% of total imports. The surge has been led largely by company-specific supply constraints as well as broader pricing dynamics.

“This was primarily on account of a surge in imports largely led by JSW Steel as it emerged as the largest importer as it surrendered its Jajang mines in the Odisha iron ore mine in 2025, which led to a drop in its domestic production. To make up for this shortfall, the company turned to imports," said Dhruv Goel, CEO of BigMint. Lower global prices also made overseas purchases economically attractive.

Iron ore prices were below $100 per tonne at the start of 2025, creating an arbitrage opportunity and making imports viable, Goel said. After accounting for logistics, domestic iron ore prices are broadly comparable to imports, or marginally cheaper, he said. However, imports offer steelmakers the advantage of sourcing large volumes from a single mine with uniform quality.