Indian Steelmakers Eye Mongolian Coking Coal
Steel

Indian Steelmakers Eye Mongolian Coking Coal

India's steel giants, JSW Steel and the Steel Authority of India (SAIL), are exploring coking coal imports from Mongolia, aiming to reduce dependence on traditional suppliers like Australia. This strategic move follows disruptions in Australian supply due to erratic weather conditions.

JSW Steel plans to procure 2,500 metric tons, while SAIL targets 75,000 metric tons from Mongolia. These efforts come as India, the world's second-largest crude steel producer, imports 85% of its coking coal, vital for steel production. Mongolia has emerged as an attractive alternative, offering higher-grade coal at prices approximately $50 per ton lower than Australian coal.

Challenges and Opportunities Although landlocked, Mongolia’s coal is expected to be transported via Russia or China, requiring robust logistical coordination. The Indian government actively supports these diversification efforts to reduce over-reliance on a single source and enhance supply chain stability.

Steel Industry Growth and Demand India’s growing steel demand, driven by rapid economic expansion and major infrastructure projects, makes cost efficiency crucial for producers. By sourcing more affordable coking coal, steelmakers like Jindal Steel and Power—also considering Mongolian coal—aim to meet increasing demand while containing production costs.

Rising Import Trends In the first half of FY24, India’s coking coal imports rose by 2% to 29.4 million metric tons, reflecting sustained demand. Traditionally, over 50% of India’s annual 70 million metric tons of coking coal imports come from Australia, underscoring the need for supply diversification.

Mongolia’s potential as a reliable supplier is a significant development for India's steel industry, offering a competitive edge in price and quality. The collaboration is expected to strengthen India's position in global steel markets while aligning with government initiatives for resource diversification.

India's steel giants, JSW Steel and the Steel Authority of India (SAIL), are exploring coking coal imports from Mongolia, aiming to reduce dependence on traditional suppliers like Australia. This strategic move follows disruptions in Australian supply due to erratic weather conditions. JSW Steel plans to procure 2,500 metric tons, while SAIL targets 75,000 metric tons from Mongolia. These efforts come as India, the world's second-largest crude steel producer, imports 85% of its coking coal, vital for steel production. Mongolia has emerged as an attractive alternative, offering higher-grade coal at prices approximately $50 per ton lower than Australian coal. Challenges and Opportunities Although landlocked, Mongolia’s coal is expected to be transported via Russia or China, requiring robust logistical coordination. The Indian government actively supports these diversification efforts to reduce over-reliance on a single source and enhance supply chain stability. Steel Industry Growth and Demand India’s growing steel demand, driven by rapid economic expansion and major infrastructure projects, makes cost efficiency crucial for producers. By sourcing more affordable coking coal, steelmakers like Jindal Steel and Power—also considering Mongolian coal—aim to meet increasing demand while containing production costs. Rising Import Trends In the first half of FY24, India’s coking coal imports rose by 2% to 29.4 million metric tons, reflecting sustained demand. Traditionally, over 50% of India’s annual 70 million metric tons of coking coal imports come from Australia, underscoring the need for supply diversification. Mongolia’s potential as a reliable supplier is a significant development for India's steel industry, offering a competitive edge in price and quality. The collaboration is expected to strengthen India's position in global steel markets while aligning with government initiatives for resource diversification.

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?