India’s Coking Coal Imports Surge to Six-Year High Driven by Russian Supplies and Increased Steel Production

India’s Coking Coal Imports Surge to Six-Year High Driven by Russian Supplies and Increased Steel Production

Sub : Geo

Sec: Eco geo

Why in News

India’s coking coal imports have reached a six-year high due to a significant increase in Russian shipments and growing domestic steel production. The shift highlights India’s diversification in sourcing away from traditional suppliers like Australia.

Rising Steel Production and Coking Coal Demand:

India’s crude steel production for the first six months of FY25 was approximately 73 MT, a 4% year-on-year increase. The rise in steel production has driven higher demand for coking coal, essential for steel manufacturing.

Shift in Coking Coal Supply Sources:

India has capitalized on discounted Russian coking coal, with imports from Russia soaring by 200% over recent years. Major Indian steel producers, including SAIL and JSW, have increased Russian coal imports, adjusting their blast furnaces accordingly.

Australia’s share in India’s coking coal imports fell to 54% (16 MT out of 29.6 MT) in H1FY25, the lowest in six years. Australian coking coal accounted for 80% of India’s imports in H1FY22 but has gradually reduced as India diversifies sources.

India’s coking coal imports from other traditional suppliers like Mozambique and Indonesia have shown slight increases.

About Coking Coal:

Top Suppliers: Australia (16 MT), Russia (4 MT), United States (4.3 MT)

Coking coal is a type of coal that is important in making high-quality coke. It is also called metallurgical coal.

This substance is an essential fuel and is useful as a reactant in the blast furnace process of primary steelmaking. Therefore, the demand for this type of coal is parallel to that of steel.

Coking coal has a low ash content, low moisture content and low sulphur and phosphorous contents.

We can categorize coking coal as a type of bituminous coal depending on the chemical composition.

During the process of coking (production of coke from coking coal), the material tends to swell and its volume increases.

The ability of coking coal to form coke relates to its physical properties such as the rank of coal. In contrast to coking coal, thermal coal cannot produce coke when the material is heated.