SAIL expands Russian coking coal imports amid shortage and rising costs

07 Nov 2023 CW Team

The Chairman of Steel Authority of India, Amarendu Prakash, announced that the company intends to increase its procurement of coking coal from Russia due to its more affordable prices. Prakash stated that the company is expecting four shipments, each with a capacity of 75,000 tons, in the quarter ending December.

Coking coal, a crucial raw material in the steelmaking process, is currently facing a shortage. Prakash explained to reporters during an industry conference that Russian coking coal is more cost-effective when compared to the coal sourced from Australia. Australia presently provides over half of India's coking coal imports, which total around 70 million metric tons annually. Apart from Russia, India also imports coking coal from the United States.

Since April, SAIL, the largest state-owned steel producer in the country, has received eight shipments from Russia. Due to the escalating import expenses related to coking coal, Indian steel companies are considering raising the prices of various steel grades, as reported by Reuters last month.

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