India’s coking coal imports have soared to a five-year high, registering 38.14 million tonnes for the April-November period of the current fiscal year. This reflects a marginal year-on-year increase, with nearly 38.12 million tonnes imported during the corresponding period last year. Notably, Russia has secured its position as India’s third-largest coal supplier, a significant shift in the country’s historical coal import landscape.
Traditionally, India has imported a substantial amount of coking coal, primarily used in steelmaking, from Russia, alongside Australia as another key supplier. Russia, previously the sixth-largest coal supplier to India, has now ascended to the third spot, surpassing countries like Canada and Mozambique.
The robust demand for steel in the domestic market is a driving force behind the surge in coking coal imports. While Australia remains the dominant supplier, accounting for 60% of shipments, its market share has declined from 75% over the past five years. Indian steel mills are strategically diversifying their sources, with Russia and the United States witnessing a more than twofold increase in supplies during this period.
Changing Supply Dynamics
India, the world’s second-largest producer, importer, and consumer of coal, is adapting to evolving coking coal supply dynamics. The shift is prompted by Indian mills seeking alternatives to mitigate price volatility and reduce dependence on a single supplier. This exploration of diversified sources aligns with the broader goal of ensuring a stable and sustainable coking coal supply chain for India’s steel industry.
Questions Related to Exams
Q: What is the current status of India’s coking coal imports?
A: India’s coking coal imports have reached a five-year high at 38.14 million tonnes for the April-November period, showing a slight year-on-year increase.
Q: Who has emerged as India’s third-largest coal supplier?
A: Russia has become India’s third-largest coal supplier, a significant shift in historical coal import patterns.
Q: What is driving the surge in coking coal demand in India?
A: Robust demand for steel in the domestic market is the primary driver behind the increased demand for coking coal.
Q: How has the coking coal supply landscape changed in the past five years?
A: While Australia remains the dominant supplier, accounting for 60%, Russia and the United States have more than doubled their supplies, leading to a shift in dynamics.