India: Iron ore imports hit nearly 1-year low in May’25 amid volatile global prices

• Weak steel demand weighs on imports
• Australia absent from top exporters list

India’s iron ore imports dropped to 0.16 million tonnes (mnt) in May 2025, hitting a near one-year low – last seen in June 2024, according to data from BigMint. The volume declined by around 36% m-o-m from 0.25 mnt in April, driven by sluggish steel demand, higher domestic production in key mining states, and volatility in global iron ore prices.

The steep fall in May’s imports follows a period of heightened activity seen between November 2024 and January 2025. During this time, India witnessed a substantial spike in iron ore import shipments:

• November 2024: 1.19 mnt (6-year high)
• December 2024: 1 mnt
• January 2025: 0.95 mnt

However, this momentum reversed sharply after March, with import volumes declining steadily over the following months.

Oman emerges as leading exporter, surpassing Australia

Oman was the largest exporter of iron ore to India at 0.11 mnt in May 2025, a significant hike of 83% when compared to 0.06 mnt in April. Notably, Australia was absent from the list of top exporters during the month under review.

South Africa occupied the second position among top exporters with 0.06 mnt. South Africa re-entered the list of top iron ore exporters to India in May after remaining inactive in April. This was because southern India-based direct reduced iron (DRI) traders and manufacturers booked high-grade imported iron ore lumps from South Africa to ensure stable raw material supplies amid domestic supply disruptions and price volatility, with bookings made in mid-April.

JSW Steel tops list of importers

JSW Steel, with an import volume of 0.11 mnt, stood as the largest iron ore importer in the month under review, followed by A One Steel with 0.06 mnt.

Port-wise imports

Among the ports, Mumbai accounted for the largest share of imports in May, with 0.11 mnt, followed by Krishnapatnam at 0.06 mnt.

Why did iron ore imports decline in May’25?

• Domestic production resumes: India’s iron ore production increased by 8% to around 27 mnt in May 2025 from 25 mnt in April, driven by higher output from key mining states. Odisha led the surge with 15.5 mnt (up 8%), followed by Chhattisgarh at 4.2 mnt (up 5%) and Karnataka at 3.9 mnt (up 5%). The steady rise in domestic production, supported by consistent output and regular auction flows, has reduced the industry’s dependence on imports. With ample local supply at competitive prices, many mills have opted to scale back on foreign procurement.
• Global iron ore prices fluctuate: With volatile international market sentiments and fluctuating global iron ore prices, imports became increasingly unviable for Indian buyers. Overall, prices of Fe 62% iron ore fines rose to approximately $101/tonne (t) CFR China by late April and continued their uptrend, reaching around $103/t by mid-May, as per BigMint data.

Outlook

The coming months will be critical in assessing whether the recent drop in India’s iron ore imports marks a temporary dip or signals a longer-term shift towards reduced dependency on overseas supplies. With the monsoon season expected to disrupt domestic mining and logistics, a rebound in imports cannot be entirely ruled out. However, the trajectory will largely depend on key factors such as global iron ore price movements and trends in domestic steel production, which will influence procurement decisions and supply chain dynamics.