India Iron Ore, Pellet Exports Fall 67% to 4-Year Low
India's iron ore and pellet exports plunged 67.2% month over month to 0.70 million tonnes in September 2026, the lowest monthly volume in nearly four years, as shipments to China fell 88.3% and firmer domestic prices reduced the incentive to export.
- Total exports: 0.70 million tonnes in September, down 67.2% from August.
- China: Shipments plunged from 1.63 million tonnes in August to 0.19 million tonnes in September.
- Product mix: Pellets accounted for 0.55 million tonnes; fines and lumps totaled 0.15 million tonnes.
- Top destination: Malaysia received 0.22 million tonnes, ahead of China at 0.19 million tonnes.
- Domestic pricing: Reported pellet export offers averaged INR 7,660/t versus INR 9,530/t domestically.
- FY2025/26: India exported 25.78 million tonnes of iron ore and pellets, down 15% year over year.
China explains almost the entire September export contraction. Shipments to China fell by roughly 1.44 million tonnes, from 1.63 million tonnes to 0.19 million tonnes. Based on India's reported 67.2% monthly decline, total exports fell by approximately 1.43 million tonnes from an implied 2.13 million tonnes in August to 0.70 million tonnes in September. Because the published figures are rounded, the comparison should be treated as approximate, but it shows how concentrated India's monthly export decline was in its largest traditional overseas market.
India's combined exports of iron ore and pellets dropped to 0.70 million tonnes in September 2026, down 67.2% month over month, according to BigMint.
The September volume was the lowest recorded in nearly four years. The last comparable low was in November 2022, when monthly exports fell to around 0.3 million tonnes following the introduction of export duties.
China Shipments Plunge 88.3% in September
The sharp reduction in Chinese buying was the dominant factor behind the monthly export decline.
Shipments to China fell from 1.63 million tonnes in August to 0.19 million tonnes in September, a decline of approximately 88.3%.
China had been India's dominant iron ore export destination, accounting for more than 90% of shipments during FY2025/26.
In September, however, Malaysia became India's largest destination, receiving approximately 0.22 million tonnes.
| Measure | September | Comparison |
|---|---|---|
| Total exports | 0.70M t | -67.2% M/M |
| Shipments to China | 0.19M t | -88.3% M/M |
| Shipments to Malaysia | 0.22M t | Largest destination |
Pellets Account for Most September Export Volume
India's September export mix was heavily weighted toward pellets.
Pellet shipments totaled 0.55 million tonnes, accounting for approximately 79% of combined iron ore and pellet exports.
Exports of iron ore fines and lumps totaled just 0.15 million tonnes, or around 21% of the monthly total.
| Product | September Exports | Share of Total |
|---|---|---|
| Pellets | 0.55M t | ~79% |
| Fines & lumps | 0.15M t | ~21% |
Why Did India's Iron Ore Exports Fall So Sharply?
BigMint identified a combination of weaker Chinese buying, lower Indian iron ore production and firmer domestic prices as the main factors reducing export volumes.
Chinese mills entered late September with weaker steel margins and increased blast-furnace maintenance, reducing near-term demand for imported ore.
Iron ore prices in China also weakened during the month. SteelPrices previously reported that the KORE 62% Fe/Qingdao benchmark fell to $96.6/t CFR on September 25, down 4.2% from $100.8/t at the beginning of the month.
See: China Iron Ore Falls Below $100/t as Demand Weakens .
India's Iron Ore Production Fell to a 2026 Low in August
Supply available for export was also reduced by seasonal and operational constraints inside India.
BigMint reported Indian iron ore production at 21.6 million tonnes in August, the lowest monthly level of 2026.
Monsoon-related disruptions and enforcement action against illegal mining in Odisha contributed to the decline.
Odisha iron ore dispatches fell to approximately 11.1 million tonnes in August, their lowest level in more than a year.
This monthly weakness should be distinguished from the broader annual trend. SteelPrices previously reported that Indian iron ore production increased substantially across the first eight months of 2026: India Iron Ore Production Rises Nearly 20% in Eight Months .
Domestic Iron Ore Prices Reduce the Export Incentive
Firmer Indian domestic prices also made overseas sales less attractive during September.
BigMint reported average export offers for fines and lumps at around INR 3,000/t, compared with approximately INR 3,500/t domestically.
For pellets, the reported difference was larger: average export offers stood at approximately INR 7,660/t, while domestic prices averaged around INR 9,530/t.
| Product | Export Offer | Domestic Price | Domestic Premium |
|---|---|---|---|
| Fines & lumps | ~INR 3,000/t | ~INR 3,500/t | ~INR 500/t |
| Pellets | ~INR 7,660/t | ~INR 9,530/t | ~INR 1,870/t |
On the reported pellet figures, domestic pricing was approximately INR 1,870/t, or 24%, above the average export offer.
Chinese Port Stocks Remain Elevated
China's ore inventory picture also provided little urgency for aggressive import buying.
BigMint reported combined Chinese port inventories of fines and lumps at 136.8 million tonnes in the final week of September, compared with 136.1 million tonnes in the final week of August.
Pellet inventories edged down to 5.66 million tonnes from 5.71 million tonnes over the same period.
Pre-holiday restocking provided only temporary price support, while weak mill margins and maintenance activity continued to limit demand.
India Exported 25.78 Million Tonnes in FY2025/26
The September collapse follows a weaker full-year export performance in India's previous fiscal year.
India exported 25.78 million tonnes of iron ore and pellets in FY2025/26, down 15% year over year.
Fines and lump ore exports totaled approximately 22.31 million tonnes, down 3%, while pellet exports fell 53% to approximately 3.47 million tonnes.
China received about 24.21 million tonnes during the year and accounted for more than 90% of India's overseas iron ore shipments.
See SteelPrices' full fiscal-year coverage: India Iron Ore Exports Fall 15% in FY2025/26 .
What Does the September Export Collapse Mean?
September's decline was unusually concentrated in Chinese demand.
India still had iron ore and pellet material available for export, but the combination of weaker Chinese mill economics, lower monthly Indian production and comparatively attractive domestic prices sharply reduced overseas sales.
Malaysia temporarily overtook China as India's largest September destination, but the longer-term export structure remains heavily exposed to Chinese buying.
That concentration means India's export recovery will depend heavily on Chinese steel-mill margins, blast-furnace operating rates and the relative economics of domestic versus seaborne sales.
Primary market source: BigMint, October 13, 2026.
Courtesy: GMK Center.
