JSW Steel has decided to import around 6 million tons of iron ore in the current fiscal from overseas market since iron ore supplies are getting tighter due to severe shortage. This is an irony that India has to import iron ore inspite of having large iron ore resources. Indian steel manufacturers are losing out the most comparative advantage of availability of local iron ore and constrained to resort to imports denting the competitiveness of steel manufacturing in India.

The country’s leading steel manufacturer, JSW Steel imported its first iron ore shipment in capsize vessel with 1,70,000 tons of high grade iron ore in the last week from South Africa at Krishnapatnam Port. Three more shipments of iron ore in capsize vessels are planned to reach Indian ports in the next few days.

Seshagiri Rao, joint managing director, JSW Steel  and group CFO, said, ''The recent closure of mines in Odisha, delay in opening up of mines in Karnataka and Goa has resulted in acute shortage of iron ore in the country. We have decided to import half a million tone of high-grade ore every month to maintain the capacity utilization at optimum level.''

''The surging iron ore prices due to shortages in India is matter of grave concern when international iron ore prices dropped by more than 30% in the last 12 months,'' he added.