India and Brazil Sign MoU to Strengthen Steel Supply Chain Cooperation

India and Brazil have signed a strategic Memorandum of Understanding to deepen cooperation across the steel supply chain, focusing on raw material security, mineral processing, and advanced mining technologies.

The agreement was formalised on 21 February 2026 in New Delhi in the presence of Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva.

1. Strategic Raw Material Alignment

Brazil is among the world’s leading producers of iron ore and holds significant reserves of manganese, nickel, and niobium, all critical inputs for steel and specialty alloy production. India currently has a crude steel capacity of approximately 218 million tonnes and continues to expand infrastructure and industrial demand. The MoU aims to strengthen long term access to key steelmaking minerals and diversify supply sources.

MetalsBuy Market Insight

Diversified sourcing reduces exposure to global supply disruptions and price volatility, particularly in manganese and nickel segments that influence alloy and stainless steel spreads.

2. Technology and Processing Focus

The cooperation framework includes:

MetalsBuy Market Insight

Technology integration in exploration and beneficiation can improve recovery rates and operational efficiency, strengthening cost competitiveness across the steel value chain.

3. Trade and Industrial Implications

The agreement aligns with a broader bilateral trade objective of surpassing USD 20 billion in the next five years.

For India’s steel sector, the MoU supports:

MetalsBuy Market Insight

The partnership represents a structural supply chain strategy rather than a short term trade development. As India scales steel capacity, securing upstream mineral access will remain central to maintaining production stability and cost control.

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