- Imported 65% Fe lump offers reach $118-120/t CFR India
- Tight domestic ore supply boosts import interest
Iron ore import inquiries in India have increased as a decline in global prices has improved the economics of imported material amid tightening domestic availability, market participants said.
South African 65% Fe lump is currently being offered at around $118-120/tonne (t) CFR India, with buyers showing increased interest in imported cargoes.
“Lower global prices have made imports more attractive, particularly as domestic availability remains tight,” a market source said.
A cargo containing South African lump is planned for delivery to Krishnapatnam and Kandla in mid-December, sources said.
The increase in import interest comes against a backdrop of weakening international iron ore prices. The monthly average price of 61% Fe Australian iron ore declined to around $97/t in September 2026, from $109/t in May, amid weak Chinese buying and subdued market activity during the holiday period.
However, domestic supply in India has also tightened. The country’s iron ore production fell to a one-year low of 21.5 million tonnes (mnt) in August, largely due to monsoon-related disruptions. In Odisha, iron ore dispatches declined to 11.1 million tonnes, the lowest level in more than a year.
The tighter availability has also been reflected in domestic auctions. OMC reduced iron ore auction volumes, while bid levels increased by up to Rs 750/t m-o-m, although overall bidding remained subdued.
Domestic miners have also raised prices. NMDC increased iron ore prices by up to Rs 250/t for September, while Lloyds had raised prices by a similar amount at end August.
Meanwhile pellet prices in western India have also risen sharply. Domestic pellet offers have risen to INR 12,800/t ($132/t) DAP Kandla in Oct’26 from INR 11,300/t ($117/t) in August.
Market participants said gap between softer international prices and firm domestic prices could support import demand. The near term outlook will depend on global price movement, Chinese demand post holidays and domestic iron ore availability recovery in India following the monsoon season.
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