India’s iron ore pellet producers have urged the government to act against a surge in pellet imports they claim are of Iranian origin but being shipped through Oman to bypass U.S. sanctions. Local manufacturers fear that the influx of cheaper imports is harming the domestic sector.
Although India is the world’s third-largest iron ore producer, the country has imported 800,000 tons of pellets so far this year. Between 2021 and 2024, imports were almost negligible. Experts attribute the rise to high domestic prices and the availability of affordable, high-quality pellets from Iran. As a result, local pellet manufacturers are now operating at only 69% of capacity.
In response, the Ministry of Steel has begun reviewing complaints submitted by domestic producers. The Pellet Manufacturers Association of India has stated that while official records list Oman as the source of the imports, it is doubtful that the country actually produces pellets.
In the first two months of the 2025/26 fiscal year, India’s finished steel consumption rose 7.1% year-on-year to 25.1 million tons, while crude steel output increased by 9.5% to 26.9 million tons. Demand is being fueled by growth in infrastructure, construction, and the automotive sectors. Against this backdrop, the ongoing review is considered critical to supporting domestic iron ore and pellet manufacturing.
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