India’s iron ore imports rose more than 80% year-on-year in the first half of 2025, supported by strong domestic demand and lower ore prices, according to Drewry Maritime Research.
Exports fell over 45% in the same period as more iron ore was retained for domestic steel production.
India’s crude steel output increased more than 9% in the first half of 2025, the fastest growth among major producers, placing the country ahead of the EU and Japan as the world’s second-largest producer.
Lower iron ore prices have kept imports competitive. A significant share of India’s output consists of fines, which require pelletising or sintering before use in blast furnaces.
Historically, these fines were exported, while lumps were consumed domestically.
High-grade lump exports faced high taxes, while fines were generally exempt.
With more mills now able to process fines, domestic consumption has increased, reducing exports.
At the same time, imports of lumps have grown to meet the needs of the steel sector. This shift in trade has increased demand for larger vessels, with a move towards Capesize ships from Handysizes and Supramaxes.
Most imports come from Australia and Brazil. The change is affecting vessel deployment patterns in the global bulk carrier market.
Drewry Maritime Research is a division of the analytics and consulting company Drewry, providing research and forecasts in the field of maritime transport. It specializes in analyzing cargo flows, freight rates, fleet capacities, and trends across various segments of maritime logistics, including dry bulk, container, and tanker shipping.