India may face an iron ore shortage by 2031 due to rapidly increasing demand in the steel industry. The country’s steel production is expected to increase from 194 million tons per annum to 350 million tons by FY2030-31, putting pressure on domestic iron ore supply.
Odisha Mining Corporation CEO Vivek Nath said that the Bureau of Mines of India has restricted the use of ores with iron content below 45% and has restricted the supply of higher quality ores to 260 million tons per annum. Nath said India could face a 22-million-ton iron ore deficit by FY2030-31, which would mean a shift from oversupply to deficit supply.
Odisha, responsible for 25% of India’s steel production, plans to supply over 40 million tons of iron ore in FY2024-25. However, regional imbalances persist, with excess ore in the east and shortages in central and southern regions, leading to higher logistical costs for inland steel plants.
Despite being a net exporter of iron ore, India continues to import high-quality raw materials, particularly from countries like Australia, Brazil, and South Africa, with about 5 million tons imported last year. Coastal steel mills are expected to rely on imports due to high domestic transportation costs.
India's steel production is estimated to reach 200-210 million tons by FY2029-30, which would be a 40-47% increase over FY2023-24.
Comments
No comment yet.