Indian iron ore pellet manufacturers urge restriction on Iranian imports transshipped via Oman.

Indian iron ore pellet manufacturers urge the government to restrict the import of Iranian iron ore pellets transshipped through Oman, stating that these imports circumvent US sanctions and could potentially harm local industries. India is the third largest producer of iron ore globally, but has already imported 800,000 tons of pellets this year, compared to almost zero imports between 2021 and 2024, according to analysis by London-based CRU Group analyst Lalit Radhakant. Most of the pellets are believed to come from Iran, transshipped through Oman to avoid sanctions, driven by rising domestic pellet prices and the competitive prices and high quality of Iranian pellets. The Indian Ministry of Steel has received petitions from domestic pellet manufacturers and is reviewing the issue. The Pellet Manufacturers Association of India pointed out in a letter to the Ministry that despite pellets showing coming from Oman, there are doubts about the actual production/origin, as Oman does not produce pellets. The surge in imports has led to a capacity utilization rate of only 69% for domestic pellet producers. PMAI believes that Oman's status as the origin of the pellets is questionable. In 2019, the Trump administration imposed sanctions on Iranian industrial metal exports, impacting Iran's revenue. India's growing demand for iron ore pellets is mainly driven by the growth in steel production in the infrastructure, construction, and automotive industries. In the first two months of the 2025/26 fiscal year, India's finished steel consumption reached 25.10 million tons, a 7.1% increase year-on-year; crude steel production increased by 9.5% to reach 26.90 million tons.