India Expands Imports of Russian Coking Coal to Fuel Steel Industry Growth
Date
11/6/2023 8:43:06 AM
(MENAFN) In a strategic move to bolster its steel industry, India is set to ramp up its procurement of Russian coking coal, a crucial component in steel production. Chairman of the Steel Authority of India (SAIL), Amarendu Prakash, disclosed this development to the media on Monday.
Prakash highlighted that Russia offers more competitively priced raw materials compared to Australia, which presently serves as India's primary source of coking coal. The Steel Authority of India, the nation's largest state-owned steel producer, anticipates the arrival of four shipments of Russian coking coal, each weighing 75,000 tons, by December.
India, facing a shortfall in domestically produced coking coal due to its inferior quality, imports approximately 70 million tons of this critical resource annually. The majority of these imports, exceeding half, are traditionally sourced from Australia. Additional significant suppliers include the United States, Canada, Mozambique, and now, Russia.
Indian steel manufacturers have been leveraging the cost-effective prices and expedited deliveries of Russian coking coal since the preceding year. The Indian Ministry of Commerce and Industry reported that in the initial eight months of 2023, Russia ascended to the position of the third-largest coking coal provider to India. Shipments surged by an impressive 2.3-fold on a year-on-year basis, reaching 4.3 million tons. Russia's share of India's total coking coal imports surged from 5 percent to an impressive 11.2 percent during this period.
Prakash further emphasized that SAIL alone has already received eight shipments of this vital raw material from Russia since April of this year.
This move marks a significant stride for India's steel industry, underscoring the nation's pursuit of reliable and cost-effective sources of coking coal to drive its steel production sector. By diversifying its coal imports and capitalizing on Russia's competitive pricing, India aims to fortify its position in the global steel market, ensuring a steady supply of high-quality steel products for various industries and infrastructure projects.
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