Although India is the world’s third-largest iron ore producer, the country imported 800,000 tons of pellets this year — a sharp contrast to the near-zero imports recorded between 2021 and 2024. Industry experts say the rise in imports is driven by the availability of cheap and high-quality pellets from Iran, which are believed to be rerouted through Oman to bypass U.S. sanctions. As a result, domestic producers are reportedly operating at just 69% of their capacity.
The Pellet Manufacturers Association of India (PMAI) has questioned the official claim that the pellets are of Omani origin, noting that Oman’s capacity to produce such volumes is doubtful.
The Ministry of Steel has confirmed it is reviewing complaints from local producers regarding the situation. Meanwhile, India’s steel demand continues to grow, fueled by expansion in infrastructure, construction, and automotive sectors.
In the first two months of the 2025–26 fiscal year, finished steel consumption rose 7.1% year-on-year to 25.1 million tons, while crude steel production increased 9.5% to 26.9 million tons.
Comments
No comment yet.