India’s coking coal imports at 10-year excessive, Russia amongst high three suppliers with 12% market share

India’s coking coal imports are at a 10-year excessive with shipments of 58 million tonnes (mt) coming in throughout FY24, pushed by excessive demand from metal mills. Imports rose seven per cent y-o-y (from 54.3 mt in FY23) and over 20 per cent throughout a 10-year interval. 

Considerably, provides from Russia are at multi-year highs of 6.4 mt within the simply concluded fiscal, a 200 per cent rise y-o-y (from 2.3 mt in FY23) and up 300 per cent over a six-year interval (from 1.6 mt in FY19), knowledge from varied ministries & commerce sources present.

India continues to be amongst high coking coal importers globally, a key feedstock in steel-making.

Phase imports various between 47 mt and 54 mt during the last 10 years, the information accessed by businessline present.

• Additionally learn: India’s thermal coal imports climb to a two-year excessive in January-March 2024

Australia cedes market house

For FY24, Australia continued to be the biggest provider of coking coal, accounting for 59 per cent or 34.2 mt of total shipments, marking a subsequent decline. The nation ceded market house to Russia – now having a 12 per cent market share – and the USA, with 14 per cent at 8.4 mt of provides. 

Six years again, Australia accounted for 81 per cent of coal shipments, Russia had a 3 per cent market share and the USA accounted for eight per cent, knowledge from consultancy agency BigMint reveals. 

In 2021, the Cupboard authorised an MoU – permitting for an institutional mechanism – between India and Russia on cooperation concerning coking coal that additional boosted provides. 

Worth volatility of Australian coal, greater reductions provided by Russia and various choices from the USA shortly led to adjustments in market share. 

• Additionally learn: Coal retains powering India as booming financial system crushes inexperienced hopes

By FY23, Australian provides occupied 70 per cent market share, USA was at 12.5 per cent, whereas Russia noticed its share transfer as much as 5 per cent. 

Nonetheless all via the yr Russia continued to supply reductions to the tune of 20-25 per cent, whereas Indian mills additionally began re-calibrating their furnaces to make sure higher mixture of high-ash content material coal coming in from Russia. 

Russia displaced nations like Mozambique and Canada to maneuver up because the third largest provider of the uncooked materials. 

“Metal demand and manufacturing have been strong in India with the nation defying world slowdown. Demand for metal continued to be on the upper facet with there being a file hike in sponge iron manufacturing,” the federal government supply defined. 

• Additionally learn: Govt directs imported coal-based vegetation to function at full capability until September

Sponge iron & metal manufacturing

India’s sponge iron manufacturing rose 20 per cent y-o-y to 52 mt in FY24, up 43 mt in FY23. This allowed manufacturing via the induction furnace route. 

Sponge iron manufacturing rose as imported coal costs fell round 48 per cent (y-o-y) to $109/t CNF Gangavaram in FY24, as towards $209/t in FY23, a BigMint report mentioned. 

Consequently, imports of thermal coal used within the sponge iron sector noticed a 62 per cent spurt final fiscal. 

India’s crude metal manufacturing elevated round 14 per cent to 143 mt final fiscal. Metal manufacturing was 127 mt a yr in the past. 

The expansion got here following a pointy improve in manufacturing via induction furnace route.

Metal making via induction furnaces grew 25 per cent y-o-y to 50 mt towards 40 mt in FY’23. The electrical arc furnaces (EAFs) confirmed 12 per cent progress to 31 mt.