India's Coking Coal Imports from Russia Surge
India's imports of metallurgical coal from Russia have witnessed a significant increase in recent years, reaching 15.1 million tonnes in 2023-24. This surge is primarily attributed to the lower prices offered by Russia compared to other major suppliers like Australia.
As a result, Russia's share in India's metallurgical coal imports has jumped from 8% in 2021-22 to 21% in 2023-24. This increase has come at the expense of Australia, which has seen its share of India's met coal imports decline from 77% to 55% during the same period.
The cost-effectiveness of Russian met coal is the primary driver behind this shift. However, analysts believe that this trend may not be sustainable in the long run due to potential export taxes and rising logistics costs from Russia.
Despite this, some Indian steel companies, such as SAIL and Tata Steel, have already begun sourcing coking coal from Russia. V R Sharma of Jindal Steel and Power (JSP) has even suggested that India could potentially meet 50% of its coking coal requirement from Russia in the future.
The increasing reliance on Russian met coal raises concerns about India's dependence on imported resources. However, the lower prices offered by Russia provide a significant advantage for domestic steel producers in the short term. The long-term sustainability of this trend remains to be seen, as it will depend on factors such as export taxes and logistics costs.