Crime Today News
India diversifies coking coal sourcing post-Covid, Russia and US emerging as key suppliers.
| Photo Credit:
iStockphoto
India’s coking coal sourcing strategy is undergoing a seismic shift post-Covid.
Once overwhelmingly dependent on Australia, India is diversifying its supply lines, with Russia – up three times since FY20 – and the United States – sourcing doubled – emerging as key players, while Canberra’s dominance wanes. In FY25, India is expected to import 57.12 million tonnes, almost at FY24 levels (57.48 mt).
Coking coal remains a key feed-stock in steel making in India – the second largest producer of crude steel globally after China and a resource where the country’s import reliance is high.
In FY20, Australia accounted for a commanding 42.1 million tonnes of India’s 57.2 mt coking coal imports—a hefty 74 per cent share. Fast forward to FY25 (provisional data) collated across market sources show, sourcing from the continent-nation has slumped to 30.3 mt or just over 53 per cent. The decline is stark: a drop of nearly 12 million tonnes, down 28 per cent over FY20 levels.
Australian coal, prized for its quality, has long been the bedrock of India’s steel production, but rising costs, supply disruptions, and a push for diversification have eroded its stranglehold.
“India is diversifying coking coal sourcing to keep costs under check and also ensure availability of multiple sources because of the changing geo-political environment,” an official aware said.
New Supplier
Russia and the United States have emerged as new important supply sources for steel-makers in India.
Russia’s contribution, a modest 3.1 mt in FY20, has soared to 8.7 mt by FY25—a near threefold increase, as per data from market intelligence firm, BigMint.
The United States, meanwhile, has more than doubled its shipments, from 3.4 mt to 8.5 mt over the same six year period.
“Together, these two nations now supply over 30 per cent of India’s coking coal, up from 11 per cent in the previous year,” a market participant said.
Moscow’s low-cost offerings are seen as a major reason for it getting a push.
India’s steelmakers, under pressure to keep production costs low, have sought cheaper options too.
Canada, Mozambique, and Indonesia have also chipped in, though their contributions remain smaller—Canada’s exports, for instance, have halved to 1.7 million tonnes by FY25, but Mozambique’s have doubled to 4.4 million tonnes. Africa is being targeted as a key supplier nation in the coming days.
On a y-o-y basis, coking coal imports have remained flat (57.12 mt), especially at a time, when Indian steel production has seen an increase of over 5 per cent.
Till February (11M FY25), crude steel production was 138.2 mt; and is expected to cross 142 mt, by FY25.
India’s Coal Ministry has also already taken up ‘Mission Coking Coal’ to increase domestic coking coal production to 140 mt by FY 2029-30, thereby reducing dependency on imports.
Published on April 4, 2025
📰 Crime Today News is proudly sponsored by DRYFRUIT & CO – A Brand by eFabby Global LLC
Design & Developed by Yes Mom Hosting
