Page 34 - Steel Metallurgy eMagazine Volume September 2026

DEMAND FORECASTING

present the complete picture. Over the
last several years, one trend has become
increasingly important. While overall
iron ore production has increased, the
availability of high-grade iron ore (Fe
65% and above) has steadily declined.
Publicly available data indicates that
the share of high-grade ore in domestic
production has reduced from nearly 20%
in FY2016-17 to about 11% in FY2025-26.
This change has important implications
because modern blast furnace operations
require consistent availability of higher-
grade feed to achieve better productivity,
lower coke consumption and improved
energy efficiency.
Iron Ore: Volume is up, But the Ore Getting harder to Find is High-Grade
This explains an apparent contradiction
that is often misunderstood. India is
among the world's leading producers requirement continues to be met through evolve beyond increasing production
of iron ore and continues to export imports. Although initiatives such as alone. Equal emphasis must now be
significant quantities of lower-grade Mission Coking Coal aim to improve placed on improving raw material
fines. At the same time, imports of domestic availability, projections quality, strengthening downstream
higher-grade iron ore have increased, indicate that absolute import volumes processing infrastructure and ensuring
reaching their highest level in several are likely to increase as steel production that mineral resources are utilised in the
years. This is not because the country expands. The challenge is not only the most efficient manner. In the long run,
lacks iron ore resources, but because availability of reserves but also the these factors will contribute as much to
the quality requirements of many steel quality of domestic coal, which generally the competitiveness of the Indian steel
plants differ from the grade profile contains significantly higher ash content industry as the expansion of steelmaking
of a substantial portion of domestic than internationally traded metallurgical capacity itself.
production. In practical terms, the issue coal. Consequently, reducing import
is increasingly one of ore quality rather dependence in this segment will require LESSONS FROM
than ore availability. sustained technological improvements,
coal beneficiation and continued FOURTEEN
In my assessment, this is where exploration rather than policy measures YEARS IN THE STEEL
beneficiation and pelletisation assume alone.
strategic importance. These technologies AND MINING
improve the quality of lower-grade ore, From my experience, the steel and SECTOR
enabling greater utilisation of domestic mining sectors should not be viewed
mineral resources while reducing as independent industries. Their
dependence on imported feed. As long-term competitiveness is closely Working in the steel and mining sector
India expands its steelmaking capacity, interconnected. Every additional over the last fourteen years has given me
investment in mineral processing tonne of steel capacity requires the opportunity to view the industry from
infrastructure should receive the same corresponding investments in mining, different perspectives. During my tenure
level of policy attention as investment mineral processing, transportation, in the Ministry of Steel, I was involved
in mining and steel plants. Capacity slurry pipelines, rail evacuation, port in policy formulation and project
creation across the value chain needs to infrastructure and environmental monitoring. Subsequently, at NMDC, I
remain balanced. management. Weakness in any one have worked on both corporate initiatives
part of this chain eventually affects the and mining operations, where the focus
Another area that deserves continued efficiency of the entire ecosystem. shifts from policy objectives to execution
policy focus is coking coal. Unlike iron on the ground. Experiencing both sides
ore, India's dependence on imported As India moves towards its ambition has reinforced a few observations that, in
coking coal remains substantial. of becoming a 300 MT steel-producing my view, are relevant while assessing the
At present, nearly 90–95% of the nation, the discussion should gradually progress of the National Steel Policy.

32 STEEL & METALLURGY SEPTEMBER 2026