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India's coking coal imports reached a five-year high of 47.97 million tonnes (MT) between April and January (10M FY24). Russia and the United States benefited the most, while costlier Australian supplies lost market share.
According to data from several ministries and trade sources, Russian shipments into India increased 140% over five years to 4.97% in the April–January period and roughly 180% YoY. Coking coal shipments were 2.08 MT five years ago, and 1.77 MT during the most recent fiscal year. In FY21 (10 months), it was 1.95 MT, while in FY22, it was zero.
The rise coincided with India entering into a MoU with Russia for coal supply, a key raw material in steel-making. India, the second largest crude steel producer globally, is the highest buyer of coking coal. Coking coal imports have remained at 47.5 MT levels for the last five years, but market dynamics have changed, data show.
Russia displaced two other traditional suppliers – Canada and Mozambique – to emerge as the third-highest coke coal seller to Indian mills. The USA was the other country to have gained significantly over the last five years. Buying of coking coal from the USA increased by over 150% to 6.99 MT in 10M FY24. It stood at 2.77 MT in 10M FY20. Incidentally, Indonesia has also seen a doubling of supplies over five years to 2.6 MT, from 1.02 MT in 10M FY20. Supplies from Indonesia are more or less flat on a y-o-y basis.
“Indian mills have substituted higher priced hard coking coal from Australia with alternatives from USA and Russia. The dynamics have seen a change and Indian mills are de-risking supplies in a bid to control costs. Russian supplies continue to come at a discount still,” a Steel Ministry official said.
But, Australia continues to be the dominant supplier. Share of Australian coking coal to total imports is now down to 60%, the official said, as against 75% five years back. Between April - Jan, supplies stood at 28.66 MT, down 10% y-o-y as against 31.63 MT in the year-ago-period. For 10M FY20, coking coal supplies were at 35.07 MT out of 47.12 MT (of imports).
Premium coking coal prices stood at $314 per tonne on Tuesday, down from the $325 per tonne range at the beginning of February. A year back, prices were hovering at around $389 per tonne.
Also Read : India's steel, aluminium exports to US likely to climb as China faces tariff barrier Sliding coking coal prices put pressure on steel & iron ore
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