India’s coking coal imports have reached a significant milestone, hitting a 10-year high of 58 million tonnes (mt) in the fiscal year 2023-24 (FY24), driven by robust demand from the steel sector.
This surge represents a seven percent year-on-year increase from 54.3 mt in the previous fiscal year and marks a remarkable growth of over 20 percent over the past decade. Amidst this surge in imports, Russia has emerged as a key player, witnessing multi-year highs in supply to India. In FY24 alone, Russia supplied 6.4 mt of coking coal to the Indian market, reflecting a remarkable 200 percent year-on-year increase from 2.3 mt in FY23 and a staggering 300 percent rise over the span of six years, from 1.6 mt in FY19. India, a major global importer of coking coal, relies heavily on this key feedstock for steel-making, making it a critical component of the country’s industrial landscape. Over the past decade, coking coal imports have ranged between 47 mt and 54 mt, with FY24 witnessing a significant uptick in demand.
Australia, traditionally the largest supplier of coking coal to India, saw its market dominance decline slightly in FY24, accounting for 59 percent or 34.2 mt of total shipments. In contrast, Russia captured a 12 percent market share with its rising supply volumes, while the USA accounted for 14 percent with 8.4 mt of supplies. The surge in Russian supplies can be attributed to various factors, including price volatility of Australian coal, higher discounts offered by Russia, and alternative options from the USA. An institutional mechanism established through an MoU between India and Russia further facilitated coking coal trade between the two countries. Despite challenges posed by market dynamics and price fluctuations, India’s steel sector has demonstrated resilience, with robust demand and production driving the surge in coking coal imports. As the steel industry continues to thrive, fuelled by domestic and global demand, India’s coking coal imports are poised to remain a crucial component of the country’s industrial growth trajectory.
