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India's coking coal imports rise 10% y-o-y in H1FY'25 amid rising steel output

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Coking

BigMint Bureau

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7 Oct 2024, 17:55 IST

India's coking coal imports rise 10% y-o-y in H1FY'25 amid rising steel output

Coking coal imports from Russia double

Imports from Australia decline 8% y-o-y

India's coking coal imports in the first half of FY'25 (April-September 2024) stood at 32.0 million tonnes (mnt), an increase of 10.34% compared to 29.0 mnt during the same period in FY'24. September 2024 accounted for 3.8 mnt of this total.

According to government data, India's crude steel production touched 72.83 mnt, marking a growth of 3.7% y-o-y. This increase was a factor in the rise in demand for coking coal.

Imports from Russia rise, from Australia fall

In H1FY'25, imports from Australia continued to dominate, totalling 16.4 mnt, down 8% from 17.9 mnt in H1FY'24. This shows that Indian steel mills are increasingly diversifying their coking coal sources to mitigate supply risks and reduce dependency on traditional suppliers such as Australia.

Meanwhile, imports from Russia saw a significant rise of 100% to 5.8 mnt in H1FY'25 compared to 2.9 mnt in H1FY'24. India has ramped up coking coal imports from Russia, taking advantage of discounted prices, as many Western countries imposed sanctions.

Notably, Mozambique emerged as a crucial supplier, with volumes rising to 2.3 mnt in H1FY'25 from 1.0 mnt in H1FY'24.

Mongolia, rich in high-quality coking coal reserves, has emerged as another potential partner. Indian companies are exploring long-term contracts and collaborations to ensure a steady supply from the country.

SAIL remains largest importer

In H1FY'25, SAIL maintained its leadership position among shippers, handling 7.9 mnt of coking coal, reflecting a modest increase of 2.54% from H1FY'24. JSW Steel also showed strong performance with a 13.38% y-o-y rise to 7.4 mnt. Tata Steel recorded a 17.82% y-o-y increase, totalling 5.3 mnt. Similarly, Jindal Steel and Power expanded its handling to 1.9 mnt, a rise of 16.31% compared to the previous year.

Outlook

The overall increase in coking coal imports during H1FY'25 highlights the strengthening of crude steel production, backed by robust demand in India's steel industry, despite fluctuations in monthly imports. Notable contributions from various countries and changes in shipper dynamics indicate a complex and evolving market landscape as India continues to bolster its steel production capabilities.