India will increase imports of coking coal, a key material for steel production, from Russia. This was reported by Reuters, citing three government sources and an industry representative.
“Steel mills in India, the world’s second-largest crude steel producer, have been hit by disruptions in coking coal supplies from Australia, which typically accounts for more than half of India’s annual imports of about 70 million tonnes,” – the agency reports.
It is noted that in October, prices for Australian coking coal jumped by 50% to more than $350 per metric ton. The cost increases included maintenance disruptions and lower-than-usual supplies from Queensland. And while Canberra assured New Delhi in November that supplies would be stable, two Indian government sources told Reuters, India is seeking to diversify its imports.
In 2022, Indian steel mills tried to increase imports of coking coal from Russia, but harsh Western economic sanctions prevented this. However, now Indian buyers and Russian suppliers are simplifying payment mechanisms and this can be done.
“Rebates and rupee payments have helped (Indian) companies look at Russia as an alternative source,” said one government source familiar with the matter.
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2023-11-28 18:10:00
