A A number of developments could turn India into the next major importer of dry goods, after China. In its latest weekly report, shipbroker Intermodal said, “In a global environment defined by geopolitical uncertainty and inflationary pressures, India continues to demonstrate resilient growth potential. Although the OECD has estimated India’s GDP growth to slow from 7.6% in FY 2025-2026 to 6.1% in FY 2026-2027, reflecting challenges such as power supply disruptions, currency depreciation, and inflation, Despite ongoing energy-related disruptions affecting industries globally, India’s industrial sector has shown continued resilience, as evidenced by recent data, with industrial production expanding 5.2% year-on-year in February, accelerating from the previous month driven primarily by manufacturing production and widespread investment in infrastructure, including… This massive expansion of steel for the national railway network.
Source: Multimedia
According to Intermodal’s Chief Analyst, Mr. Nikos Tagolis, “This supportive backdrop has translated into a strong performance in the steel sector. The state-owned Steel Corporation of India, one of the largest domestic steel producers, reported a record operating performance in FY 2025-26, representing an increase of 11.5% year-on-year, and achieved all-time highs in both steel production and sales. The company also recorded a significant contribution to infrastructure, particularly through strong supply For the Indian Railways, from January to February 2026, India produced nearly 29 million tons of steel, representing a 9.7% increase year-on-year, indicating strong underlying demand. Looking ahead, the Indian government has set ambitious targets to expand domestic steel capacity, to reach 300 million tons by 2030. Current demand, driven by urbanization and infrastructure investment, coupled with long-term production targets, indicates a continued rise in the need for steel and its inputs. Main, coke and iron ore.
“This demand is further enhanced by the slow pace of transition to green steel,” Mr. Tagulis added. “The blast furnace and basic oxygen furnace route remains dominant in terms of capacity and production, keeping coke and iron ore firmly at the heart of India’s steelmaking process. Due to the poor quality of domestic coal reserves, India relies on imports for nearly 90% of its coke needs, which is mostly sourced through seaborne trade. The steelmaking sector accounts for about 95% of Its domestic coal needs, coke consumption, and India’s steel expansion ambitions depend directly on stable and growing supplies of imported coke. In this context, the Indian subcontinent is emerging as a major importer of coke, with seaborne quantities expected to increase by approximately 10% in 2026, reaching about 87 million tons, equivalent to about 30% of the world’s seaborne coke imports. The two main suppliers, They account for more than 70% of India’s coke imports, while discussions with the US earlier this year indicated potential growth in long-term US coke exports to India, which currently stand at around 10%.
Source: Multimedia
“On the iron ore side, although India accounts for a relatively small share of global seaborne imports (about 1%), the trend is upward. Imports in 2026 are expected to rise from 9 million tons to 14 million tons, reflecting expanding steel production and the need for high-quality materials to supplement lower-quality domestic supply. Brazil is the leading supplier, exporting high-quality iron ore, followed by Oman and Australia,” the Intermodal analyst said.
“Overall, India’s role in coal and iron ore imports is expected to increase through 2026 and beyond. Rising seaborne volumes, coupled with long-distance trade routes such as Brazil and India, are expected to boost demand for large and medium-sized cargo vessels, Capesize, Kamsarmax and Ultramax vessels, through a combination of more cargo and tonnage. At the heart of this dynamic is India’s accelerating urbanization, sustainable investment in infrastructure, and a structural dependence on high-quality raw materials. For the steel industry, which local production cannot meet.
Nikos Rousanoglou, Global Hellenic Shipping News
