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JSW Steel Ltd, India's No. 3 maker of the alloy, said it is planning to raise iron ore imports to 10 million tonne this fiscal year and could boost that further if a domestic shortage continues and international prices stay low.
The company was earlier planning to import 6 million tonne, but a sharp jump in local prices due to recent closures of mines has forced it to consider more shipments.
Global spot iron ore prices have fallen 40% this year to their lowest levels since 2009 as global miners flood the market with low-cost supply.
India, the third-largest exporter of iron ore before action against illegal mining in the past three years cut supplies, could see a shortage of 30 million tonne this fiscal year through March 31, JSW's Joint Managing Director Seshagiri Rao told Reuters.
Most of the deficit would be bridged through imports from Australia, Canada, South Africa and Brazil, he said.
"International prices are at five-year lows but in India prices are going up," Rao said. "It's becoming cheaper to import and is also of better quality. We will of course raise imports further if the situation does not change."
JSW needs about 22 million tonne of iron ore per year to make steel but did not import any of the raw material last year.
Rao said JSW also expected a response in the next few weeks to its bid for assets of troubled Italian steelmaker Lucchini.
JSW bid less than 100 million euro ($128 million) for three mills, while rival Jindal Steel and Power Ltd had pulled out of the race.
Indian steel companies have been looking to boost exports to make up for subdued demand at home. JSW is led by billionaire Sajjan Jindal and Jindal Steel by younger brother Naveen.
The company was also considering buying the Ilva steel plant in Italy - Europe's largest steel plant by output capacity and privately owned by the Riva family, according to sources.
