India Plans Talks With Argentina, Indonesia, Oman To Secure Steel Raw Materials

India will hold discussions with Argentina, Indonesia, and Oman next month to secure supplies of steelmaking raw materials such as coking coal and iron ore, along with access to critical minerals and technology, according to Reuters.

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The talks are expected to take place during a global steel summit scheduled for next month, which the government has described as the country’s largest international conference-cum-exhibition for the sector, Reuters reported, citing sources with direct knowledge of the matter.

Focus On Raw Material Security

India, which ranks second in the world in terms of crude steel production after China, is strengthening its supply chain as demand in the country continues to grow. The country imports large quantities of coking coal, iron ore, and ferronickel, which are used in steelmaking.

Indonesia, which possesses the biggest reserves of nickel ore in the world, is a key supplier of ferronickel, which is used in the manufacture of stainless steel. Engagement with Indonesia is aimed at ensuring steady access to these inputs, according to Reuters.

India also imports iron ore from Oman and Brazil. Last month, India signed an agreement with Brazil to expand cooperation in mining and minerals, as per Reuters.

Critical Minerals From Argentina

When it comes to Argentina, the talks are likely to center on the acquisition of lithium and other vital minerals. For example, lithium is an essential mineral used in electric cars and renewable energy storage devices.

Argentina is the world’s fourth-largest producer of lithium, according to Reuters. India aims to secure supplies for its state-run miner NMDC as part of efforts to strengthen resource availability for industrial and energy needs.

Rising Demand And Export Strategy

In January, the government stated its intent to secure stable supplies of key inputs such as coking coal, lithium, cobalt, and rare earth elements, according to Reuters. The move is aligned with plans to expand steel production and support the transition to cleaner energy.

India is also diversifying its steel export markets from Europe to Asia and the Middle East to offset the impact of the European Union’s carbon tax, as per Reuters.

At the same time, the sector is facing supply-side challenges. A gas shortage linked to the ongoing Middle East conflict has affected smaller steel producers, while a unit of the JSW Group has flagged the possibility of a shutdown, according to Reuters.

The planned engagements with Argentina, Indonesia, and Oman are part of India’s broader efforts to secure long-term raw material supplies and support growth in steel production.