Steelmakers Urge Reforms in Iron Ore Pricing to Boost Competitiveness
Industry leaders push for higher mine output, lower premiums, and tariff support against cheap imports
Bhubaneswar : India’s leading steel producers have called for reforms in iron ore supply and pricing mechanisms to keep domestic steel competitive in global markets. The demand came at the ISA Steel Conclave 2025, where executives from Tata Steel, SAIL, JSW Steel, Jindal Steel, and ArcelorMittal Nippon Steel (AM/NS India) highlighted input cost challenges.
ISA president and Jindal Steel chairman Naveen Jindal said the auction of more iron ore mines would ease supply concerns and reduce high premiums that steelmakers are forced to pay. “If enough mines are brought out, these premiums will also go down,” he said, adding that greater supply would automatically lower prices and strengthen India’s competitiveness.
Echoing the sentiment, AM/NS India CEO Dilip Oommen stressed that reducing input prices is critical to making steel cost-effective. Industry representatives also discussed reallocation of idle mines held by SAIL and Odisha Mining Corporation to increase domestic output.
Since 2015, 135 iron ore mines have been auctioned, but only 35 are operational due to clearance delays and unviable premiums, according to market intelligence firm Big Mint. Odisha, Chhattisgarh, and Karnataka remain the top producers.
Meanwhile, Jindal welcomed the Directorate General of Trade Remedies’ recommendation of a 12% tariff on Chinese steel imports, calling it sufficient to counter dumping.
Despite cost pressures, industry leaders remain optimistic about demand, expecting double-digit growth in the second half of FY25, led by infrastructure projects, government spending, and the auto sector. While the National Steel Policy targets 300 million tonnes of production by 2030, experts believe the milestone may be achieved by 2032.
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